PayPal shares were up 1.7% early Thursday.
The two companies will charge an exclusive fee of $3 per service. This is the first time PayPal will allow users to take cash out of their accounts at a physical location.
"Today's news is the first time our two companies are working together to build products for our shared customers," said Dan Schulman, PayPal's president and CEO. "We consider this a key collaboration for both PayPal and Walmart. We are committed to working together to make it simple and easy for people to use PayPal cash in and cash out money services at every Walmart location in the U.S. We look forward to working hand-in-hand to help people and families with their financial services needs."
Walmart, meanwhile, said the partnership was part of its commitment to offer financial services to its customers.
"Walmart is committed to expanding access to financial services products that are convenient, easy to use and available for everyday low prices," said Daniel Eckert, senior vice president, Walmart Services & Digital Acceleration. "With 90% of Americans living within 10 miles of a Walmart store, we know that offering PayPal cash in and cash out money services for an exclusive low fee is going to provide great value to the many people who rely on Walmart and PayPal to help manage and move their money."
Shares of Walmart rose 0.15%.