By Josh Beckerman
Green Dot Corp. reached an agreement with Wal-Mart Stores Inc.
to continue as the issuing bank for retailer's prepaid reloadable
debit card program for an additional five years.
The news sent Green Dot shares surging 29% to $19.76 in
after-hours trading. The companies had worked together on
Wal-Mart's MoneyCard program since its 2006 inception, but worries
about the possibility of losing the business had helped push Green
Dot shares down 25% so far this year through Monday's close.
Business from Wal-Mart locations made up 54% of the company's
revenue in 2014, with about 38% of the total coming from the
MoneyCard program.
Green Dot also worked with the retailer on last year's rollout
of a checking account service called GoBank, which doesn't charge
overdraft fees, unlike other the banks housed within the retail
giant.
The new MoneyCard term, which became effective May 1, replaces
an agreement that was previously extended to the end of the
year.
Green Dot separately unveiled a stock buyback program on Monday
worth $150 million. Its market value at the close was about $790
million.
Green Dot calls itself the largest provider of reloadable
prepaid debit cards and cash reload processing services in the
U.S.
Write to Josh Beckerman at josh.beckerman@wsj.com
Access Investor Kit for Green Dot Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US39304D1028
Access Investor Kit for Wal-Mart Stores, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US9311421039
Subscribe to WSJ: http://online.wsj.com?mod=djnwires