Walmart Inc (WMT.N) announced on Thursday a program that would allow customers to purchase Bitcoin using ATM-like machines installed by Coinstar in select stores in U.S.
This initiative is a subpart of a broader move by Coinstar, which has partnered with a cryptocurrency cash exchange called Coinme to offer Bitcoin at more than 8,000 kiosks. This pilot would include 200 kiosks inside Walmart Stores across the United States as well.
Walmart spokeswoman Molly Blakeman said on Thursday, “The test with Coinstar, which is known for the machines that let customers exchange U.S. coins for paper bills or gift cards, began earlier this month.”
Coindesk had earlier reported the Walmart-Coinstar deal as well as tested the soon-to-be-provided service.
The Bitcoin ATM can be used by customers by inserting a banknote and receiving a paper voucher with a redemption code. To redeem the code, customers need to then set up a Coinme account and complete a background check before they can redeem the voucher. The machines charge a 4% fee for the Bitcoin option and a 7% cash exchange fee, Coindesk said.
“Bitcoin ATMs have been around for a while, including in many supermarkets,” said Sam Doctor, chief strategy officer and head of research at BitOoda, a regulated crypto brokerage. “Walmart expands Bitcoin access to more people, though, and gives it further legitimacy among skeptics, should they roll it out beyond an initial pilot.”
“It is an expensive way to buy Bitcoin, but lowers the barriers to entry for first-time buyers of crypto,” Doctor said.
To draw a comparison, popular crypto trading platforms Binance and Coinbase charge 3% to 4.5%, and 3.99% for debit and credit card purchases respectively. It is free to make a direct deposit from a bank account to a Binance or Coinbase wallet.
According to Coin ATM Radar, there are currently over 25,000 bitcoin ATMs at select grocery stores and service stations in the U.S. Coinstar operates 4,400 kiosks enabled for Bitcoin purchases, across 33 states.