Green Dot Corp. has purchased some assets of eCommLink, allowing it to move its processing in-house, the Prepaid card marketer said Jan. 24.
Green Dot, of Monrovia, Calif., recently renewed an outsourcing agreement with Total System Services Inc., or TSYS, for processing and network connectivity. Green Dot's $2.5 million purchase of the certain processing and hardware assets of eCommLink will allow it to move those functions in-house under the supervision of John MacIlwaine, Green Dot chief information officer.
The transition will take place over the two-year term of Green Dot's contract with TSYS.
"Approximately one-third of Green Dot's total processing expenses consist of fees paid to payment processors like TSYS and to Synovus, one of our issuing bank partners," John Keatley, Green Dot chief financial officer, said in a press release.
"We expect that integrating our recent acquisitions of Bonneville Bancorp and the assets of [eCommLink] will enable us to … build out our own in-house card issuing and processing capabilities."
TSYS, of Columbus, Ga.., said Jan. 24 its revenue for the fourth quarter grew 7.3%, to $472.2 million, and its net income rose 18%, to $61 million.
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