Green Dot Corporation (GDOT - Free Report) and the world’s largest retailer Wal-Mart Stores, Inc. (WMT - Free Report) recently launched six new cards to broaden their portfolio of Walmart MoneyCard re-loadable prepaid debit cards. Following this expansion, GreenDot’s Walmart prepaid card portfolio now includes nine cards.
This new class of card is expected to offer varying features at reasonable costs. The portfolio of prepaid cards is available under three broad service categories: Walmart MoneyCard Basic, Plus and Preferred. These debit cards offer a range of services such as mobile web registration, account alerts, pharmacy discounts and merchant funded offers. Within the Plus category of cards are included the NASCAR Prepaid Visa Card, Mossy Oak Prepaid MasterCard and RushCard Live Prepaid Visa Card.
This move by the company is a significant one to address the evolving needs of millions of Wal-Mart customers and to strengthen its market share. GreenDot faces strong competition from major players like American Express Company (AXP - Free Report) , which recently launched a reloadable prepaid card. AmEx’s new card has a lower monthly maintenance fee compared to Green Dot's previous debit cards, making it more attractive to customers.
Moreover, new entrants in the market, like drug stores and grocery store operators, who have also launched their own re-loadable prepaid cards, are giving stiff competition to Green Dot.
Based in California, Green Dot provides low-cost banking and payment solutions. The company markets prepaid debit cards and related services both at retail locations and online. Its main objective is to reinvent personal banking for the masses, through a portfolio of financial services, available across a nationwide array of retail locations.
Green Dot currently carries a Zacks Rank #4 (Sell). Also belonging to the same industry, MasterCard Incorporated (MA - Free Report) holds a Zacks Rank #2 (Buy).