Green Dot renews vital card partnership with Walmart
Green Dot, which derives roughly a third of its revenue from sales at Walmart stores, announced the renewal Tuesday of a prepaid card partnership with the Bentonville, Ark.-based retail giant.
Under the agreement, Green Dot will continue to serve as the issuing bank and program manager for the Walmart MoneyCard until Jan. 1, 2027. The deal had been scheduled to expire on May 1, 2020.
The Walmart MoneyCard is a reloadable prepaid card that the two companies created in 2006. Over the years, negotiations over the partnership’s renewal have been closely watched by Green Dot shareholders because of the prepaid card issuer’s large reliance on Walmart shoppers.
In the second quarter of this year, products and services sold at Walmart stores accounted for approximately 35% of Green Dot’s total operating revenue, according to a recent securities filing.
The MoneyCard agreement was last renewed in 2015. Under that deal, Walmart received an estimated 6% greater share of the revenue generated, as compared with the prior agreement.
Financial terms of the most recent renewal were not disclosed on Tuesday. Green Dot executives will likely face questions about the deal during the Pasadena, Calif., company’s third-quarter earnings call, which is scheduled for Nov. 7.
Also on Tuesday, Green Dot and Walmart announced the launch of a joint fintech accelerator program, to be called TailFin Labs, which will be majority-owned by the discount retail chain.
The two companies said in a press release that the accelerator will focus on the intersection between financial services and omnichannel retail shopping experiences.