News Summary

  • Starting Monday, August 21, Walmart will allow customers to pay via contactless methods using their phones, smartwatches, or bank cards, including digital wallets such as Apple Pay and Google Pay.
  • This payment method will initially be available at select Walmart and Sam's Club stores, with plans to roll it out to approximately 4,600 stores nationwide by the end of the year, and to gas stations by 2027.
  • Walmart has long explored ways to reduce payment costs, having previously partnered with venture capital firm Ribbit Capital to launch the OnePay digital card and introduced BNPL services like Klarna to diversify payment options.

In-Depth Analysis

Walmart, the world's largest retailer, announced on Monday that customers can now use contactless payment methods at select stores, including phones, smartwatches, or bank cards with built-in digital wallets such as Apple Pay and Google Pay. According to a Walmart press release, the service is initially being piloted at select Walmart and Sam's Club locations, with plans to expand to approximately 4,600 stores nationwide by the end of this year. Additionally, the company stated it will offer this payment option at its gas stations starting in 2027, aiming to provide customers with "another familiar and convenient contactless payment option at checkout."

Walmart is the highest-revenue retailer globally, with annual revenue of $692 billion last year (according to the National Retail Federation). Its new contactless payment also supports digital wallets such as Samsung Pay and Garmin Pay, as well as other wearable devices, with details published on a FAQ page.

Walmart has been actively exploring and expanding payment options, partly to reduce the high costs associated with accepting credit and debit card payments. When customers use bank cards not branded as Walmart or Sam's Club, Walmart must pay higher interchange fees to banks and card networks. To address this, the company has been promoting lower-cost payment methods. For example, the digital OnePay card it accepts was developed by a fintech startup in which Walmart has invested. The retailer, headquartered in Bentonville, Arkansas, co-founded this startup in 2021 with venture capital firm Ribbit Capital.

Additionally, Walmart has expanded its payment channels by offering "buy now, pay later" (BNPL) options. Last year, Swedish company Klarna Group partnered with a Walmart-backed fintech company to provide financing services to the retail giant through a digital payment app, breaking the previous exclusivity of BNPL installment loans offered by San Francisco-based Affirm Holdings.