Lucas Jackson | Reuters
A Walmart logo is displayed above the floor of the New York Stock Exchange shortly after the opening bell in New York, August 16, 2018.
This is the first time PayPal customers will be able to take cash out of their PayPal accounts in a brick-and-mortar store, the companies said. Customers already can load their PayPal accounts with cash at the stores. The service will cost $3 per use.
PayPal Cash Mastercard customers will also be able to access their cash balance using Walmart Service Desks, ATMs and cash registers for the same fee.
“Walmart is committed to expanding access to financial services products that are convenient, easy to use and available for everyday low prices,” said Daniel Eckert, Senior Vice President, Walmart Services & Digital Acceleration, Walmart.
Both firms expect to have the service in every Walmart store in the U.S. by early November.
Services such as this are a good way of drawing in customers who are unbanked or have limited access to banking services. Slightly more than a quarter of U.S. households fit into either category, according to a 2015 study by the Federal Deposit Insurance Corporation.
Shares of PayPal were down nearly 1.5 percent in premarket trading. Shares of Walmart were down nearly 1 percent.