Walmart (WMT), AmEx (AXP) Look to Shake Up Financials, Mobile Payments with New Low-Fee Service (GDOT) (NTSP)
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Shares of GreenDot (Nasdaq: GDOT), eBay (Nasdaq: EBAY), NetSpend (Nasdaq: NTSP), and Western Union (NYSE: WU) are on watch today following Walmart (NYSE: WMT) and American Express (NYSE: AXP) announcing the launch of a new payment system today.
Walmart and AmEx unveiled Bluebird, which the duo said will provide thins like smartphone and mobile bill pay, with lower fees than traditional checking and debit card accounts. Bluebird will also allow, "person to person (P2P) payments, mobile app functionality, and the ability to control subaccounts for friends and family right from a smartphone."
Really, the new initiative is a threat to many in the financial sector, including banks and credit unions. It's not a sham either; Walmart and AmEx said a pilot program began in late 2001, with the services being shaped based on customer feedback.
Most notably, Green Dot, in its most recent 10-K, said: "Our Green Dot-branded cards also compete with our co-branded GPR cards, such as the Walmart MoneyCard." Uh oh.
Greed Dot is down the most Monday morning, off about 14 percent in early trading. eBay and NetSpend are also indicated lower. eBay's main issue will be with competition for PayPal as it looks for larger merchant adaptation both domestically and internationally.
Walmart and AmEx unveiled Bluebird, which the duo said will provide thins like smartphone and mobile bill pay, with lower fees than traditional checking and debit card accounts. Bluebird will also allow, "person to person (P2P) payments, mobile app functionality, and the ability to control subaccounts for friends and family right from a smartphone."
Really, the new initiative is a threat to many in the financial sector, including banks and credit unions. It's not a sham either; Walmart and AmEx said a pilot program began in late 2001, with the services being shaped based on customer feedback.
Most notably, Green Dot, in its most recent 10-K, said: "Our Green Dot-branded cards also compete with our co-branded GPR cards, such as the Walmart MoneyCard." Uh oh.
Greed Dot is down the most Monday morning, off about 14 percent in early trading. eBay and NetSpend are also indicated lower. eBay's main issue will be with competition for PayPal as it looks for larger merchant adaptation both domestically and internationally.
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