Prepaid Card Provider, Green Dot Corporation (GDOT - Free Report) recently declared that its banking arm has been granted regulatory approval from the Board of Governors of the Federal Reserve System and the Utah Department to acquire Wal-Mart Stores Inc.’s (WMT - Free Report) MoneyCard Portfolio from GE Capital Retail Bank. The transaction is expected to be sealed during the first quarter of 2014.
In June this year, Green Dot Bank, the subsidiary bank of Green Dot Corp., entered into a definitive agreement with GE Capital Retail Bank, General Electric Company’s (GE - Free Report) subsidiary. This enabled Green Dot to acquire reloadable prepaid cards bearing the marks of the world’s largest retailer - Wal-Mart.
Per the agreement, GE Bank transferred all the deposits underlying the prepaid card, at face value, to Green Dot Bank. In turn, Green Dot Bank assumed certain liabilities of GE Bank, including its obligation to Walmart under a previously amended and restated prepaid card program agreement dated May 27, 2010.
Post the deal, Green Dot Bank and Walmart, operating as team, launched many new products in the market. Towards the beginning of the month, they released 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.
Green Dot Bank is headquartered in Provo, Utah, while its parent Green Dot Corporation is based in California. Green Dot provides low-cost banking and payment solutions. 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 #3 (Hold). Also belonging to the same industry, MasterCard Incorporated (MA - Free Report) holds a Zacks Rank #2 (Buy).