Woolworths (ASX:WOW) share price outperforms following digital wallet launch

Woolworths shares held up amidst broad selling across the ASX 200 on Monday.

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The Woolworths Group Ltd (ASX: WOW) share price weathered the storm on Monday after the S&P/ASX 200 Index (ASX: XJO) tumbled 0.85% to 7,286 points.

Shares in the supermarket giant managed to finish the session in the green, up 0.24% to $38.33.

How the Woolworths share price managed to eke out gains on Monday

Consumer staples held up

Most sectors struggled to find headway on Monday, with notable losses from sectors including materials, energy and financials.

Perhaps due to the resurgence of COVID-19 cases and the reintroduction of lockdowns, sectors including healthcare and consumer staples managed to close the session in positive territory.

More specifically, the S&P/ASX Consumer Staples Index (ASX: XSJ) finished Monday's session up 0.24%.

In addition to the gains posted by the Woolworths share price, Coles Group Ltd (ASX: COL) shares also managed a rise of 0.88% yesterday.

Previously, the Australian Bureau of Statistics observed a 1.5% increase in food retailing turnover in May.

The ABS observed that Victoria, which entered a COVID-related lockdown in late May, experienced a 4.0% increase in food retailing, with a particularly strong performance from supermarkets.

Woolworths' latest digital push

No, Woolworths isn't launching its own buy now, pay later service.

On 2 June, Woolworths revealed the "next step in its evolution into a retail ecosystem" with the launch of its stand-alone payments system, Wpay.

According to Woolworths, the company is the fifth largest processor of card payments in Australia, settling an annual value of more than $50 billion.

Wpay is said to offer Australian merchants a "comprehensive payments and commerce platform" with a suite of features from integrated in-store and digital payments, payment services and gift card program management.

The Woolworths share price reacted positively to this news, adding 1.29% on the day of the announcement to close at $37.35.

On Monday, The Australian reported that Woolworths will trial another new digital feature called "Everyday Pay"

According to the report, Everyday Pay is a new digital wallet that will allow customers to "load their credit, debit and gift card details along with their payment preferences in the app".

"The digital wallet will then take over when customers scan the QR codes on payment terminals at check-outs".

The focal point of this initiative is to "help streamline check-outs and speed up the shopping process".

About the Woolworths share price

The Woolworths share price has been a steady mover this year, rallying 13.10% year to date.

Most of its returns have occurred in the past 3 months, driven by positive announcements including the demerger of its Endeavour Group Ltd (ASX: EDV) business and PDF Food services acquisition.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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