Shares of Western Union (WU) - Get Report jumped on Tuesday after the money-movement company announced a new agreement that its services will be offered at Walmart (WMT) - Get Report stores across the U.S.
Western Union stock was up 2.33% at $22.44 in trading on Tuesday after it announced a deal with Walmart that will, for the first time, enable Western Union money transfer services at Walmart locations nationwide.
Domestic and international money transfers, bill payments and money orders will be offered at more than 4,700 Walmart stores with a rollout planned to begin in the spring, the companies said.
The deal comes as Western Union, the Denver-based payment and money transfer processor, continues to fight for market share amid growing demand for virtual money transfer services that have only accelerated since the pandemic.
No formal tie-up has been announced, though a deal would help shore up both companies’ offerings, which have been in decline amid growing reliance on direct online payments between banks and individuals.
The Western Union Company was founded in 1851 as a telegram-transmission company. It morphed into a financial services and communications company, eventually discontinuing its telegram service in 2006.
Western Union's stock has gained 1.1% over the past three months through Friday. Shares of Walmart have gained 1.2% over the same period, while the Dow Jones Industrial Average has advanced 9.3%.