Photo by Ringo Chiu.
Financial technology company Green Dot Corp. Pasadena-based retail giant Walmart Inc. have teamed up to launch the Walmart MoneyCard, which offers demand deposit accounts to help the retailer’s customers save money.
Walmart’s 1 million MoneyCard holders can access Green Dot’s digital banking platform and other money management features.
Julia Unger, vice president of financial services at Walmart, said the card offers “a more convenient and innovative way for customers to manage their finances,” offering “cash back, overdraft protection, direct deposit, interest on savings and more “.
Green Dot’s primary business line is federally insured prepaid debit cards which can be used to make payments and purchases and withdraw cash. Cards are sold at retailers such as CVS, Rite-Aid, and Walmart.
The sight deposit account is another step towards making Green Dot more like a bank.
A demand deposit account is a bank account from which deposited funds can be withdrawn at any time. The funds held in the account also bear interest. Checking and savings accounts are common types of demand deposit accounts.
By converting the Walmart MoneyCard from a prepaid account to a current deposit account, Walmart and Green Dot are able to give Walmart MoneyCard current account holders more digital banking and Green Dot money management features.
Point Vert has been in the process of restructuring since the arrival of Dan Henry, who was appointed managing director and president just as the Covid-19 pandemic was setting in last year.
The company’s biggest move came on May 8 when it announced plans to move its headquarters to Austin, Texas, from Pasadena.
Green Dot has reported a number of initiatives to rebuild its position in the market.
An example of an effort to generate more revenue came on May 14 when Green Dot agreed to pay $ 165 million for the tax refund processing business unit of Louisville-based Republic Bancorp Inc., expanding its presence in the tax segment.
The two companies said they plan to close the deal before the end of the year.
Green Dot entered the tax segment by acquiring the Santa Barbara Tax Products Group in 2014.
Another area of potential growth for Green Dot emerged in January when it launched Go2bank, a mobile app designed to help people who live paycheck to paycheck.
Go2bank, according to Green Dot, caters to consumer needs with overdraft protection, a rewards program, high interest savings, and credit.
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