Green Dot Corp.’s fourth-quarter revenue surged 31.9% from a year earlier to $91.8 million from $69.6 million as consumers activated more of the prepaid card company’s cards. Net income was $7.94 million, up 15.7% from $6.86 million.
The Monrovia, Calif.-based company, which operates prepaid card programs targeted at underbanked consumers, said Feb. 10 that the number of cards it activated in the quarter jumped 10% from a year earlier, to 1.53 million.
Green Dot makes money from fees charged when consumers activate new cards and perform certain transactions. Partner banks issue its Visa- and MasterCard-branded cards, which operate like a traditional debit card. Retail stores such as 7-Eleven Inc., Walgreen Co. and Wal-Mart Stores Inc., sell the cards.
Green Dot has made a push to broaden its sales channels in the past year and was recently selected to manage the U.S. Department of Treasury’s pilot of a prepaid card for tax-refund recipients (
“We have continued our mission of providing Americans with access to safe, low-cost, FDIC-insured banking products to handle their daily transactional needs,” Steve Streit, Green Dot chairman and chief executive, said in a press release.
