Magazine article American Banker

Green Dot Makes A Deal to Use MoneyPak Online

Magazine article American Banker

Green Dot Makes A Deal to Use MoneyPak Online

Article excerpt

Green Dot Corp., a Monrovia, Calif., marketer of prepaid products, has taken a leap in capturing "card-not-present" transactions by partnering with Chase Paymentech LLC, the largest merchant acquirer.

The 600,000 merchant clients of Paymentech, a Dallas joint venture of JPMorgan Chase & Co. and First Data Corp., now can accept the MoneyPak product for payment, Green Dot said this week.

MoneyPak allows consumers to use a PIN to transfer funds between accounts. Until now Green Dot customers used the product mainly to load funds on to prepaid cards or to pay cable bills.

Green Dot, which targets underbanked and unbanked consumers, said the deal is meant to help the 80 million consumers who have no credit card or banking relationship pay for telephone and Internet purchases.

The deal "is about increasing merchant acceptance for our customer base," said Mark Troughton, the president of Green Dot's cards and network group. "Online merchants know that there is a large portion of consumers who can't shop with them."

Bob Nadeau, Paymentech's group executive of product development, said card- not-present payments - those in which the card is not used physically - make up a substantial and growing share of transactions.

"Between your recurring business, your Internet shopping, buying airline tickets over the Net, catalogue orders - any of those things is a huge part of our daily life," Mr. Nadeau said.

Tim Sloane, the director of debit research at Mercator Advisory Group in Waltham, Mass. …

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