What's going on?

Walmart is launching a new way of paying for things called�wait for it�Walmart Pay! �It�s interesting because it�s an attempt by a retailer to control mobile payments itself rather than rely on a third-party supplier like Apple Pay, Google Wallet or Square.

What does this mean?

Customers can now go shopping at Walmart, open the Walmart app on their smartphone (incl. Android phones, unlike with Apple Pay) and scan the QR code at the checkout. And then walk out, having paid for the item(s) through a credit card or bank account that�s been previously linked to Walmart Pay. What customers cannot do is use Apple Pay, Google Wallet or Samsung Pay at the retailer�s stores. This is, effectively, an attempt by Walmart to control its own customers without relying on a third-party for payment processing (incidentally, it could also decrease Walmart�s reliance on credit card providers and associated fees). Walmart Pay is not going to be available for use at other retailers � so it�s not really a direct competitor to Apple Pay.

Why should I care?

Bigger Picture: Payments is a huge market (estimated to be worth $2 trillion by 2024) and everyone wants a slice of it. Companies like Apple�and Square�want to own the platform that you use to pay for things. Apart from perhaps charging a fee (like credit cards), just the access to huge amounts of customer data is attractive (what did customers buy, when did they buy it, etc.). As we know, information is power, especially in the age of �big data.� For the stock: This is part of Walmart�s big push towards digitalization. As the payments industry is getting disrupted by digital players, Walmart wants to ensure that it isn�t joining the game too late (as it arguably did with e-commerce). By creating its own payments infrastructure, it is hoping to maintain control of its customers� Walmart experience and not cede that control to others.