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PrePaid debit card

Green Dot to Buy and Issue the Wal-Mart MoneyCard

Adam Rust's picture

Posted June 10, 2013

Late last night, Green Dot announced that it will acquire the Wal-Mart reloadable prepaid card program (Wal-Mart MoneyCard) currently issued by GE Capital Retail Bank.

The MoneyCard is one of the largest prepaid cards in the country. When combined with Green Dot,

Green Dot Bank will have a sizable lead over any other bank in the prepaid space. Likewise, Green Dot will lap the next largest program manager, NetSpend, by another large increment.

Prepaid card deposits were only a fraction of GE Capital Retail's balance sheet. As such, Green Dot Bank will not become a large bank as defined under Durbin. This could mean that Wal-Mart

MoneyCard consumers suddenly find that their cards will be able to do more, most notable of which is the possibility that those cards will now come with online billpay.

Prepaid Credit Building Products Returning

Adam Rust's picture

Posted March 11, 2013

One of the themes that came away from last week's Prepaid Expo in Orlando was the re-emergence of credit building products for GPR cards. In fact, eCredable, ClearNow and WilliamPaid have brought new credit builders to market already. Moreover, representatives of other companies hinted that their divisions have their own concepts in development.

The failure of Pay Rent Build Credit has meant that any mention of the idea is

Credit Returns to Prepaid: Tandem Money Insight MasterCard

Adam Rust's picture

Posted July 12, 2012

Credit is back on prepaid, but in a new iteration that sheds much of the baggage associated with the MetaBank i-advance. Tandem Money is in the process of beta testing a new product that combines a spend, a save, and a line of credit function on one card. The card uses some of the best practices developed by behavioral economists on how best to convince people to save money.

The most intriguing thing - and possibly the most dangerous as well - is that Tandem Money uses

a dual issuer model. The Tandem Money/Insight Card uses two issuers - one for the spend and then the other for the savings/line of credit.

"I tell people it is as if a consumer put their paycheck on to an account at Wells Fargo via a direct deposit," says Tandem Money CEO Trent Sorbe, "and then sent those dollars through an ACH over to an account at US Bank."

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