An unlikely duo, Walmart and American Express have announced a partnership to launch a new prepaid card service. The agreement brings a new product called Bluebird to market.
Walmart and American Express have announced the service as part of some kind of joint venture. The Bluebird card will tap into American Express' vast payment network, and have features that are generally considered to be high-end including American Express customer service, roadside assistance, and mobile banking services for drafting and check cashing.
The goal is to grab new customers who are annoyed with bank fees. Banks raised their monthly account fees following a decision to regulate American debit card fees. With no other revenue sources available, banks increased monthly fees on consumers with low balances. That created a new boon for card companies who can provide customers with prepaid debit and credit cards with much lower fees than a traditional bank.
Walmart and American Express are committed to keeping the card low cost. The Bluebird card will not have annual fees, monthly fees, or a minimum balance requirement typical of other credit cards and prepaid debit cards. The card will also sport low fees for ATM service.
The new cards present a threat to other companies. In fact, Walmart is competing with its own MoneyCard from GreenDot, which charges customers a monthly service fee to use their card.
The agreement is beneficial to both Walmart and American Express. Walmart will be able to drive more consumers to its stores for basic services on their Bluebird cards. American Express will see user growth as customers take to its low priced and affordable prepaid credit card.