Customers With New Prepaid Card--Should Big Banks Be Nervous?

Forbes
October 8, 2012

Walmart wants to be your new banker.

Today Walmart announced an alternative to traditional debit and checking accounts in partnership with American Express. The Bluebird accounts target consumers who are fed up with increasing fees from traditional bank accounts.

The Bluebird accounts will have no minimum balance requirement and no monthly maintenance, annual or activation fee. Customers can access their money for free using one of 22,000 American Express MoneyPass ATMs, but will be hit with a $2 fee if they are not enrolled in direct deposit.

Walmart says the card was launched in response to consumers who say they are not getting the value they expect from traditional bank accounts with debit cards because of their increasingly higher fees. (Think: Bank of America, JPMorgan Chase, Citi and Wells Fargo’s debit card fee debacle last year.)

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