NetSpend Holdings Inc.'s first-quarter revenue rose 16% from a year earlier, to $80.8 million, as the activity on its prepaid debit cards increased and more of its customers began using direct deposit.
The Austin, Texas, company said its net income rose 68% in the quarter, to $7.8 million.
NetSpend said on Thursday that the total volume of debit transactions and cash withdrawals made with its cards was $3.2 billion, up 23% from a year earlier. Its number of active cards — or those that customers have used in a transaction in the last 90 days — was 2.3 million, up about 10% from a year earlier.
The number of active cards that had direct deposit, a key driver of future card usage, rose 36%, to 834,000.