When Juan Pedroza needed to make a last-minute monthly payment on his truck loan last month, he didn't go to a local bank branch, post office or check-cashing store. Instead, the school maintenance worker stopped in at a Wal-Mart in Farmers Branch, Texas, on his way home and headed for the "money-services" department at the customer-service desk.

"I always use Wal-Mart when I am going to be late. It will get there tonight," said the Spanish-speaking Mr. Pedroza, who made his comments through a bilingual Wal-Mart store manager.

As the Bentonville, Ark., retailer's efforts to enter the nation's banking business -- even in a limited way -- trigger an outcry of opposition, Wal-Mart Stores Inc. has built a sizable presence in the financial-services business.

During the past few years, Wal-Mart has been selling financial products to low-income customers who may shop in its stores, but don't have relationships with traditional banks -- those that the industry defines as the "underbanked." Among the offerings: check cashing, bill payment, money orders and a partnership with MoneyGram International Inc., of Minneapolis, that enables immigrants to send money to their home countries from a Wal-Mart store.

Wal-Mart is becoming more vocal about its strategy in the part of the financial-services sector that competes with banks, check cashers, postal services and money-transfer companies like Western Union, a unit of First Data Corp., of Greenwood Village, Colo. Wal-Mart is trying to enter the check-cashing business in Massachusetts, could get help in doing the same from proposed legislation in Rhode Island, and has explored offering college-savings plans. b

"We have only scratched the surface of what's possible," said Jane Thompson, president of Wal-Mart's financial-services operations, in a speech at a banking-industry conference in Chicago last month.

Ms. Thompson's remarks triggered murmurs from audience members, who appeared surprised by Wal-Mart's efforts. Wal-Mart said it averages 1.5 million to two million money-services transactions a week. On one recent day, the retailer processed 328 money orders in Selma, Ala., 163 money transfers in New Orleans and 151 check-cashing transactions in Birmingham, Ala., Ms. Thompson said at an earlier banking-industry event in New York.

All of this comes as Wal-Mart awaits word on its applications to obtain an industrial-bank charter in Utah and federal deposit insurance. The world's largest retailer by sales said it is seeking the approvals in order to process its own credit-card transactions, which would cut costs. The company said it doesn't plan to open bank branches.

To date, the financial-services business represents a fraction of Wal-Mart's $312 billion in annual revenue. The company doesn't break out financial results for the business, reporting it as a contributor to "other income" in its financial statements. A spokeswoman declined to discuss financial results for the business.

Since its financial-services operations don't accept customer deposits, Wal-Mart can pursue these business segments even though it doesn't have a bank charter or federal deposit insurance. States typically regulate check cashers and often cap their service fees.

Wal-Mart's prices for the financial services are lower than many competitors. Wal-Mart charges 46 cents for a money order, compared with as much as $1.30 at the post office. The company also charges a maximum of $3 to cash a payroll check; check-cashing firms usually charge 2 percent to 3 percent of the check's face value. Wal-Mart sets up separate financial-services areas in some of its larger stores; elsewhere, it processes the transactions at the customer-service desk, the cash register or at special booths.

Wal-Mart offers money transfers, money orders and express bill payments across the U.S. It also cashes payroll and government checks for customers in 45 states, targeting people who don't have checking accounts or who can't afford to wait for a check to clear. The average paycheck cashed at a Wal-Mart store is for $300, the company said. Conventional banks often won't cash a check if the customer doesn't have an account. These consumers commonly go to check-cashing outlets.

Like its effort to get a banking charter, Wal-Mart has drawn opposition to its plan to expand in the check-cashing business. Bankers in Massachusetts oppose Wal-Mart's efforts to operate check-cashing facilities in its 44 stores there. The state, which has 90 licensed check cashers, held seven public hearings to consider Wal-Mart's application. A public-comment period ended last week, and the state's banking division is expected to issue a decision soon. "Wal-Mart wants people to cash their checks in their stores so they can then make impulse purchases in the store," said Bruce Spitzer, spokesman for the Massachusetts Bankers Association, which represents 210 banks that operate in the state. "We don't think this is a good service for consumers."

Wal-Mart disputes that notion, saying about 14 percent of people who cash checks at the store make purchases at the same time.

Joe Baginski, who owns two check-cashing stores in Massachusetts, figures that Wal-Mart will quickly grab as much as half of the state's check-cashing market and put some local stores out of business. "There is no question we can't compete with them on a price basis," he said. His two Bay State Check Express outlets charge 2 percent of the value of a paycheck and as much as 3 percent for larger amounts like insurance settlements.

ACE Cash Express Inc., the nation's largest check-cashing concern as measured by number of stores and market value, hasn't changed its pricing in areas where it competes with Wal-Mart, spokesman Eric Norrington said. The Irving, Texas, company, which doesn't operate in Massachusetts but has stores in 38 states, charges an average 2.5 percent of face amount of a paycheck.

Wal-Mart doesn't have a check-cashing license in Rhode Island, but that could change if the state enacts pending legislation that would eliminate requirements for bulletproof glass and steel partitions at companies where check-cashing isn't the primary business. Wal-Mart didn't comment on its Rhode Island plans, and the state legislators who sponsored the bills didn't return calls.