They're obviously taking a loss on this (due to credit card fees) if the recipient gets the full amount sent. So this must be a loss-leader that's building up to something else where they expect to make a ton of money.

That "something" is most likely just "replacing cash and cards", but will be interesting to see how it plays out. It's a bold move regardless.

EDIT: I meant debit card transaction fees, not credit card fees.