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 company announced May 5.
The Austin, Texas-based company said its net income rose 68% for the quarter to $7.8 million.
The total volume of debit transactions and cash withdrawals made with its cards was $3.2 billion, up 23% from a year earlier, NetSpend said. 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 use, rose 36% to 834,000.
To boost its cardholder base, NetSpend said it formed an alliance with BET Networks to develop a prepaid card for African American consumers.
NetSpend performs account management and transaction processing duties for its cards, which are issued by partner banks.
