Magazine article American Banker

1Q RESULTS: Green Dot's Expansion Plans Heat Up with Rite Aid Deal

Magazine article American Banker

1Q RESULTS: Green Dot's Expansion Plans Heat Up with Rite Aid Deal

Article excerpt

Byline: Andrew Johnson

The prepaid card marketer Green Dot Corp. is putting more muscle into its expansion beyond retail checkout lanes.

The Monrovia, Calif., company has signed Rite Aid Corp. as its first client for a payroll card program the drugstore chain plans to offer its employees. The deal was announced Thursday, a week after Green Dot said it hired a former JPMorgan Chase & Co. managing director to head a new division for running prepaid card programs for government agencies.

Prepaid payroll and government benefit cards are new focus areas for Green Dot, which has largely relied on merchants like Wal-Mart Stores Inc., CVS Caremark Corp. and 7-Eleven Inc. to sell its reloadable cards.

Analysts say Green Dot has infiltrated most of the obvious large partners, putting emphasis on its need to improve in-store marketing and add new distribution channels.

"We're eager to actively begin pursuing relationships with federal, state and local governments to help solve their disbursement challenges while helping recipients enjoy the convenience and safety that Green Dot products offer," Steve Streit, Green Dot's chairman, president and chief executive, said during a conference call with analysts Thursday.

In January, the Treasury Department said it had selected Green Dot to help manage a test program that allows tax filers to receive their refunds on a prepaid card.

Payroll programs, such as the one Green Dot is doing for Rite Aid, could also help drive growth, said Gil Luria, an analyst at Wedbush Securities LLC. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.