Walmart will be cutting the price of its prepaid MoneyCard to $3, down from $9. They're looking to appeal to customers who aren't comfortable with using credit cards in the current economic situation, and are looking to build brand loyalty among its shoppers. Since introducing the card in 2007, they've sold over 2 million and $2 billion has been loaded onto the prepaid cards.
Source: Reuters
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1 comment:
Dropping the price? WMT doesn't drop prices THAT much unless they are in a last ditch to save a program. Sounds like they are struggling with the product. If you do the math, it sounds like a dog. Let's see - 2mm cards over two years is less than one card sold per day per store. Yet, they cash "hundreds of thousands of checks every week."
Loading $2 billion in cash over two million cards is just $1,000 in loads per card. Assuming the average load is $150, it sounds like card users are loading the card fewer than seven times before giving it up.
It is a novel product, but the numbers don't add up to a home run, in this opinion.
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