The media reports that the Walmart division (Walmex), which operates in Mexico and Central America, intends to expand the capabilities of the digital wallet provided to customers.
Representatives of the company announced their intention to add new functionality to the Cashi virtual wallet, allowing users to make money transfers and withdraw funds. Also, another new service will be the transactions of migrants by bank transfer. The media reports that the company is studying the prospects for the subsequent extension of the expanded set of functions to loans and some other financial solutions.
Plans to expand the set of financial services available within the digital wallet have emerged following Walmex’s purchase of the Trafalgar payment app in April.
Cashi was launched in 2018. Since then, the virtual wallet has only been used in Walmex stores. The purchase of Trafalgar will expand the geography of the use of this wallet. The company expects that Cashi can be applied wherever there is functional compatibility with digital wallets.
In a statement on the acquisition of Trafalgar, Walmex noted that this transaction will expand the value proposition of Cashi.
Currently, with the help of a digital wallet, users can make payments at Walmex-affiliated stores and on e-commerce sites. The planned expansion of functionality shortly will allow consumers to send and receive money transfers.
Cashi accounts will also provide the opportunity to send and receive money through the SPEI payment network, withdraw funds from both branded stores and ATMs, and make payments anywhere.
Marcelino Herrera Vegas, Senior Vice President of Financial Services at Walmex, says that the fintech component of the company’s business structure is currently expanding. He also said that the purchase of Trafalgar will allow the firm to continue to create solutions for millions of customers and partners, helping them save money and improve their material well-being.
Expanding the functional content of a digital wallet has both advantages and potential risks. In Mexico, the fintech space exists on a limited scale, which is why this area of activity is promising due to the lack of fierce competition and the presence of interest from consumers. At the same time, there is a high level of overdue loans in this country.
Walmex aims to extend its services to an audience of 42 million non-bank consumers across Mexico. Many of them are representatives of the middle class.
As we have reported earlier, Walmart Invests $200 Million in PhonePe.