Background

• Walmart announces Walmart Pay
• Walmart remains supportive of MCX and is still part (my first hand knowledge)
• Walmart Pay does not use Paydiant, but is using QR code capture (my first hand knowledge)
• Currently Walmart Pay is not tokenizing (my first hand knowledge)
• Walmart has highly successful mobile app
• Walmart is #2 online retailer (AMZN $89B, WMT.com $12B)
• Walmart.com has 30M+ Cards on File (my estimate)
• WMT almost every retailer in loyalty
• Walmart and Visa/issuers have reached some sort of swipe fee settlement (~$5B)
• Walmart does not have a loyalty program, but rather ELP
• QR Codes are not an approved “card present” delivery channel and thus are CNP
• MCX is operational, but Target and WMT are the clear leaders
• ApplePay is making inroads to CVS, BestBuy and other MCX Participants
• JPM gave WMT/MCX flat fee payments 2 months ago for ChasePay

As I’ve stated before, there are 3 industrys that enable mobile payments: grocery, gas, transit (frequency of use). Given WMT’s scale, consumer loyalty, mobile success, cards on file and acceptance cost efficiencies this is a no brainer. My summary is that they have used their unique assets in a new and innovative way, with superb timing.