Woolworths (ASX:WOW) launches new payment solution: Wpay

Woolworths is moving into the fintech space with its new payment solution

| More on:
happy teenager using iPhone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

News broke this afternoon that Woolworths Group Ltd (ASX: WOW) has launched its payment solution, Wpay. While the Woolworths share price hasn't visibly reacted to the news yet, it's having a good day on the ASX.

At the time of writing, the Woolworths share price is up 1.25%, with shares in the company swapping hands for $42.28.

Let's take a closer look at the retail giant's new payment solution.

Wpay payment solution

Wpay claims it brings together the retail experience of the supermarket giant and its global partnerships to meet the needs of both merchants and customers.

Woolworths is already the largest non-bank receiver of card payments in Australia. It processes more than 1 billion transactions each year – equalling $50 billion worth.

Wpay states it offers both in-store and online payments, including split payments. It also includes fraud management and other security features.

Further, Wpay provides merchants with rich analytic insights and allows them to offer scalable gift card management and custom rewards programs.

According to Wpay's website, Woolworths' customers using the Wpay app can select and pay for their groceries as they shop, with no need to go through a check out when they've finished.

Currently, Woolworths' supermarkets and Big W, as well as former Woolworths brand EG Group, are using Wpay.

According to The Australian, Wpay will become the payment provider for Endeavour Group's brands BWS and Dan Murphy's, following the demerger of Endeavour Group from Woolworths. The demerger is currently in its final stages.

The Australian also reported former National Australia Bank Ltd. (ASX: NAB) executive and Woolworths' financial services leader, Paul Monnington, is to be Wpay's managing director.

Woolworths share price snapshot

The Woolworths share price has been performing well on the ASX lately.

Currently, the Woolworths share price has gained 5.75% since the start of 2021. It's also 17.24% higher than it was this time last year.

The retail giant has a market capitalisation of around $52 billion, with approximately 1.2 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

A gambler at a casino bets a pile of chips on one number
Consumer Staples & Discretionary Shares

Own Star Entertainment shares? 12 things to weigh up before voting on takeover

Let's take a look.

Read more »

A car dealer stands amid a selection of cars parked in a showroom.
Broker Notes

Up 77% in a year, guess how much more upside Macquarie tips for Eagers Automotive shares

Macquarie released its latest analysis on Eagers Automotive fast rising shares this morning.

Read more »

A farmer looks backwards towards his crops.
Consumer Staples & Discretionary Shares

Elders shares result: The good, the not so good and the interesting, according to Macquarie

It was a mixed half for the agribusiness company. Here's Macquarie's take.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
Consumer Staples & Discretionary Shares

Takeover terms found unfair to Star Entertainment shares investors but the 'only lifeline' left

Star has released the independent expert's report into the Bally's takeover deal and set a date for the vote.

Read more »

A warehouse worker is standing next to a shelf and using a digital tablet.
Consumer Staples & Discretionary Shares

Wesfarmers share price dips amid strategy day for investors

What's ahead for this diversified conglomerate?

Read more »

A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.
Consumer Staples & Discretionary Shares

Should I buy Woolworths shares today?

Woolworths shares have gained far less than Coles shares over the past year. Is that about to change?

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Consumer Staples & Discretionary Shares

Which 'enduring high-quality business' has become a forgotten ASX 200 stock?

Fundie says this ASX 200 consumer discretionary stock has been flying under investors' radar.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Consumer Staples & Discretionary Shares

Why is the Kogan share price crashing 12%?

Profits are down at this ecommerce company during the second half.

Read more »