Walmart Inc. is adding cash-back travel rewards to its membership plan as the company pushes to gain ground on Amazon.com Inc.’s Prime program.
Starting this week, Walmart+ members can get back 5% of their spending on hotels, car rentals and vacation activities in the form of Walmart Cash, which can be redeemed for US currency or spent with the retailer at stores or online. Members get 2% back on flights bought through Walmart+, according to the company’s website. Travel reservations are powered by Expedia Group Inc.
The travel benefits expand Walmart’s drive to broaden the appeal of its membership plan, which also includes free shipping on orders of more than $35, gasoline discounts and access to the Paramount+ streaming service. Last week, Walmart said it would offer memberships to people on government assistance at half off the price of $98 a year or $12.95 a month.
The program still trails Prime by a wide margin. Morgan Stanley estimated last month that Walmart+ has about 21.5 million members. About 167 million Amazon shoppers in the US had Prime memberships as of March, according to market researcher Consumer Intelligence Research Partners.
Walmart is also making changes to Walmart Cash, which was rolled out last summer under the name of Walmart Rewards. Previously, the benefits could only be redeemed with Walmart at stores or online. Now, shoppers with at least $25 in Walmart Cash can claim US currency up to a limit of $100 per transaction.
