Green Dot Corp. has established a new division to serve government agencies.
The Monrovia, Calif.-based company, whose prepaid cards are sold in thousands of U.S. retailers and online, announced April 20 that the division will design and implement programs for federal, state and local agencies for payroll and benefit disbursement.
The company also said it has hired Mark Shifke, a former managing director with JPMorgan Chase & Co.’s investment banking operations, to lead the operation as the general manager of government programs and vice president of special projects. Shifke, who was an early investor in Green Dot and served on its board in the past, will start in May.
“Mark’s understanding of our products, our customer base and how our company operates will make him an integral part of our management team,” Steve Streit, Green Dot’s chairman, president and chief executive, said in a press release.
Green Dot manages and markets its prepaid card accounts, but partner banks issue the cards.
The U.S. Treasury Department earlier this year named Green Dot the manager of a pilot during which consumers may receive tax refunds through a prepaid card account. Bonneville Bank, a subsidiary of Utah bank holding company Bonneville Bancorp, which Green Dot is awaiting regulatory approval to buy, is issuing the cards.
In pursuing more government customers, Green Dot is going up against large mainstream banks that issue cards and manage programs for agencies, including Chase and Wells Fargo & Co.
