Green Dot corporation has got Federal Reserve Board's approval to acquire Wal-Mart branded prepaid debit card issued by GE Capital. This initial announcement of the deal was done in June 2013, but Green Dot has been able to convince the regulators only 5 months later the same.
Green Dot Corporation is an issuer of prepaid master card and visa cards in United States. Company was founded in 1999 and currently hosts its card through 60,000 retail stores. Green Dot also transfers Social Security payment to personal bank accounts. Company is head quartered in California and provides co branded card program with Wal-Mart, AT&T, Citi Bank and so.
Green Dot announced that it will be buying Wal-Mart money card portfolio from GE capital retail bank. Post announcement of regulatory approval, shares of Green Dot rose by 7.1% in afternoon trading by $1.66 to reach $25. This acquisition will double Green Dot's total deposits out of which $476 million are added through this deal.
After this deal, Green Dot is planning to expand its services for Wal-Mart line of cards like automated bill payment system. Company will also be offering certain services to Prepaid Master card holders like reloading card at Wal-Mart's cash registers. Apart from this company will also be adding few more prepaid cards in same category.
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