Walmart’s Financial Solutions Aim to Enhance Customer Value
Santiago Benvenuto, the head of Financial Solutions for Walmart Mexico and Central America, explained that financial solutions are gaining significant interest among consumers. With their new financial products, Walmart aims to strengthen its value proposition.
Increasing Customer Purchasing Power and Payment Channels
Walmart Mexico seeks to increase its customers’ purchasing power and diversify their consumption channels and payment methods by facilitating access to credit, according to Santiago Benvenuto. He also mentioned that with 50% of payments in Mexico still being made in cash, there is an opportunity to promote digital payment solutions and support financial inclusion in the country.
Launch of Walmart Invex and Sam’s Club Invex Credit Cards
Following the official launch of the Walmart Invex and Sam’s Club Invex credit cards, in partnership with Invex Banco and Mastercard, Santiago Benvenuto highlighted that financial solutions are generating substantial interest among consumers. These new financial products aim to enhance the customer experience by providing greater purchasing power and opening up new channels for consumers who previously paid in cash.
“These products are designed to enable greater purchasing power for our customers and also open up new channels. Customers who previously paid in cash can now take advantage of our e-commerce platforms,” Benvenuto explained.
He further elaborated that by enabling credit for the over 6 million customers visiting Walmart’s 3,214 stores daily and leveraging technology, the company can gather consumer data to identify spending patterns in cash transactions and offer tailored financial solutions.
Addressing Low Levels of Financial Inclusion
Santiago Benvenuto emphasized that despite the wide range of credit cards available in the Mexican market, the level of financial inclusion remains low. Walmart aims to leverage its extensive store network to eliminate barriers to access and assist customers in transitioning from cash-based payments to digital ones.
“We are seeking genuine and deep integration into the lives of these customers, understanding the proximity and trust Walmart generates for a segment currently unserved by the formal financial system,” Benvenuto said. “With half of the population over 15 years lacking a bank account, the opportunities are immense.”
Jean Marc Mercier, CEO of Invex Financial Group, concurred that financial inclusion is a key pillar for the current government. The partnership with Walmart aims to support this goal by ensuring customers can obtain a credit card even without a credit history.
“All Walmart customers will leave the store with a fully approved credit card,” Mercier guaranteed.
Benefits of New Credit Cards
Mauricio Schwartzmann, country manager of Mastercard Mexico, explained that digitalization offers advantages over cash payments, as it allows merchants and financial institutions to better understand users.
“As you transition from cash to digital payments, you generate data that enables access to the best services, products, and benefits… Once users embrace usability and security, there are no reasons to prefer cash,” Schwartzmann added.
The new Walmart Invex and Sam’s Club Invex credit cards come with a 3.5% cashback (Walmart’s digital platform) on purchases within Walmart Mexico, 1% cashback on other purchases, and a 10% discount on the first purchase. Additionally, there will be no annual fee if customers make a minimum monthly purchase at any establishment and enjoy interest-free months for shopping at Bodega Aurrera, Walmart, and Sam’s Club.
Santiago Benvenuto assured that the card ensures security for each transaction and offers a guaranteed credit option, enabling all Walmart customers to leave the store with an approved card. The maximum credit line is up to 400,000 pesos.
Walmart’s Credit Card History
Walmart de Mexico’s credit card offerings are not new. The company previously partnered with Bancomer to provide financing options for its customers. Later, through the operation of Banco Walmart, the retail chain offered credit products. Following its sale to Inbursa in 2014, Walmart transferred its credit card operations to the Carlos Slim-owned financial group.
Currently, the Inbursa Walmart credit card remains active and is backed by Mastercard.
Key Questions and Answers
- What is the main goal of Walmart’s new credit cards? The primary objective is to increase customers’ purchasing power and diversify payment channels by facilitating access to credit.
- What partnerships were established for the new credit cards? Walmart partnered with Invex Banco and Mastercard for the launch of the Walmart Invex and Sam’s Club Invex credit cards.
- What benefits do the new credit cards offer? Benefits include cashback on Walmart purchases, interest-free months for shopping at specific stores, and a guaranteed credit option.
- Why is Walmart focusing on financial inclusion? With only 50% of the population over 15 having a bank account, Walmart aims to leverage its extensive store network to promote financial inclusion.
- What is Walmart’s history with credit cards in Mexico? Walmart has previously partnered with Bancomer and operated its own bank before transferring credit card operations to Inbursa, which is owned by Carlos Slim.
