Green Dot Corp. on Monday said its own bank unit will replace GE Capital RetailBank to service Green Dot’s Wal-Mart-branded reloadable prepaid cards program.
The Monrovia prepaid card provider said in a regulatory filing that Green Dot Bank will become the issuing bank and depository institution for all past and current Wal-Mart MoneyCard accounts on file. The deal also includes any future Wal-Mart MoneyCard accounts, at least through the end of Green Dot and GE’s current agreement with Wal-Mart Stores Inc., which expires in May 2015.
GE served as the third-party bank issuer for the program, an arrangement dating from before Green Dot owned its own bank. Terms of the deal, which is expected to close in the second half of the year, were not disclosed.
Green Dot shares closed up $1.76, or 10 percent, to $19.33 on the New York Stock Exchange.
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