Euronet Worldwide Inc. of Leawood, Kan., will handle the infrastructure for Wal-Mart’s new money transfer service, which will allow consumers to send money between any of 4,000 Wal-Mart stores in the United States.
Wal-Mart said its money transfers, available starting April 24, would cost $4.50 for up to $50 transferred and $9.50 for up to $900 transferred. The $900 limit allows Wal-Mart to avoid the expense of securing and reporting to banking regulators the identity of the money transfer senders.
Euronet is better known for operating networks of automated teller machines around the globe. It acquired Ria Money Transfer in 2007 for $500 million, according to analyst Peter Heckmann with AvondalePartners LLC.
Heckmann had said in an email ahead of the announcement that Euronet would benefit significantly from a wire transfer agreement with the big retailer. After a conference call the companies held, Heckmann estimated Euronet could collect between $100 million and $150 million in new revenue from the partnership. He notes that Wal-Mart’s money tranfer rates undercut Moneygram’s transfer fees.