Mobile payments are rapidly transforming the world of retail, offering consumers unprecedented speed and convenience at checkout. In fact, according to a 2020 report by eMarketer, over 92 million U.S. consumers made a purchase using a mobile wallet last year – a figure that‘s projected to exceed 100 million by the end of 2021. As "tap to pay" becomes the new norm, more and more shoppers are asking whether they can use popular mobile wallets like Google Pay and Samsung Pay at major retailers.
For Android users looking to pay with their smartphone at the biggest store of them all, the question is: Does Walmart accept Google Pay or Samsung Pay? We‘ve investigated Walmart‘s mobile payment policies in depth to provide a comprehensive answer.
The Current State of Mobile Payments
To grasp Walmart‘s stance on Google Pay and Samsung Pay, it helps to understand the rapidly evolving mobile payments landscape. Over the past decade, we‘ve seen a proliferation of mobile wallets and contactless payment methods that allow customers to pay with a simple tap or scan of their phone. The top mobile wallets in the U.S. by active users are:
- Apple Pay (43.9 million users)
- Starbucks app (31.2 million users)
- Google Pay (25.0 million users)
- Samsung Pay (16.3 million users)
- Walmart Pay (9.3 million users)
Source: eMarketer
As you can see, the Starbucks app has an exceptionally large user base thanks to its popular rewards program. But when it comes to general-purpose mobile wallets not tied to a single retailer, Apple Pay and Google Pay lead the pack. Samsung Pay, which is limited to select Samsung devices, has a smaller but still substantial user base.
Crucially, the top three mobile wallets – Apple Pay, Google Pay, and Samsung Pay – all use NFC (near-field communication) technology to enable contactless payments. NFC allows secure data transmission between two devices in close proximity, generally less than 2 inches apart. When you hold your phone near a payment terminal equipped with NFC, your device and the terminal perform a secure handshake to complete the transaction, all in just a few seconds.
NFC mobile payments are now accepted by most major U.S. retailers, including 99 of the top 100 merchants by transaction volume. According to a recent survey by Worldpay, 79% of respondents said they had used a contactless payment method in the past 12 months, with usage highest among younger consumers.
Walmart‘s Mobile Payment Strategy
Despite the widespread adoption of NFC-based mobile wallets, there‘s one notable holdout: Walmart. The retail giant has opted not to accept Google Pay, Samsung Pay, or any other mobile wallet that uses NFC. Instead, Walmart has doubled down on its own proprietary mobile payment solution called Walmart Pay.
Launched in 2015, Walmart Pay is a QR code-based mobile wallet built into the main Walmart app. Instead of tapping your phone on an NFC terminal, you scan a QR code displayed on the PIN pad to complete your purchase. Walmart Pay is now available at all 4,600+ Walmart stores in the US.
So why has Walmart eschewed popular NFC wallets in favor of its own app? According to Daniel Eckert, Senior Vice President of Walmart Services & Digital Acceleration, it‘s all about owning the customer relationship from start to finish:
"We made a strategic decision to design Walmart Pay to work with almost any smartphone and accept almost any payment type […] The result is an innovation that will make the ease of mobile payments a reality for millions of Americans."
By prompting customers to use Walmart Pay, the company captures valuable data on shopping habits that would otherwise go to third parties like Google or Samsung. This data can help Walmart optimize its inventory, personalize promotions, and drive loyalty. Walmart Pay also supports the company‘s broader ecosystem, which includes everything from in-store pickup to prescription refills.
There are also significant cost considerations at play. While Walmart has never disclosed the specific transaction fees associated with Walmart Pay, it‘s likely lower than what the company would pay to accept NFC wallets. Card networks like Visa and Mastercard charge retailers an interchange fee for every purchase, generally between 1.5% to 3.5%. Mobile wallets often come with an additional fee on top of that.
By controlling the entire payment stack, Walmart can reduce these fees and negotiate more favorable rates with its banking partners. In 2018, Walmart teamed up with Green Dot to release the MoneyCard, a reloadable prepaid card that‘s tightly integrated with the Walmart Pay ecosystem. Green Dot CEO Steve Streit described the partnership as an "instant nationwide footprint," underscoring how Walmart‘s mobile payment strategy extends beyond the confines of its own app.
The Pros and Cons of Walmart Pay
So what does Walmart‘s embrace of QR codes over NFC mean for shoppers? Let‘s break down some of the key advantages and limitations of using Walmart Pay compared to Google Pay or Samsung Pay.
Advantages of Walmart Pay:
- Accepted at all Walmart locations nationwide
- Supports all major credit cards, debit cards, prepaid cards, and Walmart gift cards
- Offers exclusive discounts, promotions, and cash-back rewards
- Integrates with other Walmart services like pharmacy and money transfers
- Saves transaction history and e-receipts for easy returns
- Considered more secure than traditional swipe or chip credit card payments
Limitations of Walmart Pay:
- Only works at Walmart, not at other retailers or online merchants
- Requires opening the Walmart app and scanning a QR code, which can be slower than NFC tap-to-pay
- Doesn‘t support store loyalty cards or membership cards like Google Pay does
- No peer-to-peer money transfer capabilities like Samsung Pay has
- Not compatible with smartwatches or other wearables
Ultimately, whether Walmart Pay is right for you depends on your shopping habits and priorities. If you‘re a loyal Walmart customer who frequently shops in-store and wants to maximize rewards, setting up Walmart Pay is a no-brainer. You‘ll likely find the QR code scanning process quite intuitive, and the extra savings can add up.
On the other hand, if you value the flexibility to pay the same way across many different merchants, Walmart Pay‘s siloed approach may be frustrating. For shoppers whose primary goal is convenience, the extra step of opening an app at checkout can seem like a needless hassle compared to the seamless tap-and-go experience offered by NFC wallets.
The Future of Mobile Payments at Walmart
As more and more consumers ditch cash and cards for mobile payments, Walmart will face mounting pressure to adapt to changing preferences. While the company has held firm on not accepting NFC wallets thus far, it‘s not inconceivable that Walmart could change course if it starts losing business to more mobile-friendly competitors.
It‘s worth noting that Walmart has made some concessions on the digital payments front in recent years. In 2019, the company added support for PayPal within the Walmart app, giving customers another cashless way to pay. Walmart also briefly tested support for Chase Pay, JPMorgan Chase‘s QR code-based wallet, before discontinuing it in 2021.
Walmart is also making big investments in other areas of fintech that could reshape how customers pay and manage their money. The company recently launched a fintech startup in partnership with Ribbit Capital to develop "next-generation digital financial products" for retail customers. While the exact nature of these products remains unclear, some analysts see it as a sign that Walmart is moving closer to becoming a bank in its own right.
As the mobile payments race heats up, Walmart will need to balance its desire for control and profitability with the changing expectations of younger, tech-savvy shoppers. The company‘s sheer size and resources mean it can afford to play the long game, but even the world‘s largest retailer isn‘t immune to shifts in consumer behavior. How Walmart adapts its mobile strategy in the coming years will have major ripple effects throughout the retail industry.
The Bottom Line
So in summary, Walmart does not currently accept Google Pay, Samsung Pay, or any other NFC-based mobile wallet. The company has instead opted for its own QR code-based payment solution called Walmart Pay, which is housed within the main Walmart app.
While Walmart Pay offers some unique benefits like integrated rewards and discounts, it lacks the universal acceptance and seamless user experience of NFC wallets. As mobile payment adoption continues to surge, it remains to be seen whether Walmart will eventually cave to industry pressure and embrace tap-to-pay technology.
For Android users deciding between Google Pay and Samsung Pay, both offer similar core functionality in terms of contactless payments. Google Pay has a slight edge in terms of active U.S. users, but Samsung Pay offers some unique features like MST technology for payment terminals that don‘t support NFC. Neither wallet will work at Walmart for the foreseeable future.
Of course, mobile payments are just one piece of the larger shift toward digital commerce and frictionless shopping experiences. As Walmart and other retailers continue to innovate with new apps, services, and financial products, the way we pay will evolve in tandem. The key for consumers is to stay informed about their options and choose the payment methods that best align with their individual needs and preferences. Because when it comes to your money, every tap matters.
