Why Is Walmart (WMT) Now Accepting Third Party Mobile Wallets?

• Walmart (NasdaqGS:WMT) is beginning to accept Apple Pay and Google Pay in its US stores, reversing a long-standing policy.
• The retailer is rolling out support for both mobile wallets across its point of sale systems after previously backing only its Walmart Pay app.
• The move brings Walmart's in store payment options closer to peers that already support third party digital wallets for tap to pay transactions.
• Walmart's embrace of Apple Pay and Google Pay is a significant shift in its payment strategy, but it is not the whole investment story. Our analysis turns up 2 other big wins for Walmart as well.

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Walmart runs a global network of retail and wholesale stores, clubs, ecommerce sites, and mobile apps. Any shift in how it handles payments touches a huge volume of transactions and gives the retailer another digital touchpoint with everyday shoppers.

Does the team leading Walmart have what it takes? See our full breakdown of the management team's track record and compensation.

What Walmart’s Apple Pay shift really says about the “alternate profit pools” story

Walmart’s investment story asks you to believe that a low-margin retail base can support a premium P/E because digital services, advertising, and memberships keep taking a bigger share of profits. Letting Apple Pay and Google Pay in the door tests how far that fee-first mindset can stretch without losing customer convenience.

Expansion of high-margin business streams, Walmart Connect, marketplace, and Walmart+ memberships, is diversifying Walmart's income base beyond retail...

See how the full story points towards a $128 fair value for Walmart.

Allowing third-party wallets weakens the old idea that Walmart could tightly control checkout to push its own app and payments, but it also removes friction for shoppers who already rely on Apple and Google for everything else. That matters because the Narrative leans on omni-channel usage, where any extra transaction routed through Walmart’s ecosystem feeds marketplace fees, advertising and membership engagement.

The harder question is whether this move leaves money on the table in payments just as Walmart is fighting card fees and rising wage and logistics costs. If Apple Pay support lifts traffic and basket frequency but does not translate into higher-margin digital behaviors, the alternate profit pools story carries more execution risk than the headline suggests.

This kind of news only really makes sense if you have a clear view of where Walmart is trying to take its profit mix over time, which is exactly what a Narrative is meant to clarify.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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