Green Dot and RushCard Partner Up for a Bigger Share of the Prepaid Card Market
Green Dot Corporation has acquired the popular prepaid card co-founded by Russell Simmons, RushCard, for $147 million.
The RushCard is one of the more popular prepaid cards on the market, and has been around quite a while; fourteen years to be exact. In the wake of the purchase, Russell Simmons reflected on the origins of the card. “Fourteen years ago I embarked on an incredible journey to provide a new financial tool for millions of Americans who had only limited access to traditional banks.”
Prepaid cards offer an alternative for folks with no credit history, or with limited or bad credit. They may not be able to qualify for a traditional bank account, but they need to use cards for certain transactions. Being able to have a prepaid card helps them accomplish their financial goals.
Another reason some people turn to prepaid cards is to avoid the fees often charged by big banks. Checking accounts often require clients to keep a minimum balance in their account, or make a certain number or type of transactions, in order to avoid being charged a monthly fee.
Partnership provides opportunities for expansion
Simmons said he believes the acquisition by Green Dot will help further the goals he has for the RushCard. “As I have done with my ventures in music, comedy and fashion, I am partnering with the best company in the industry, Green Dot, to expand our opportunities and continue our mission to revolutionize the banking industry.”
Simmons called his customers “among the most loyal in prepaid” and said he was looking forward to expanding the RushCard tradition of providing outstanding products for years to come.
Prepaid cards are becoming more and more popular among many segments of the population. Not only can they be used to pay for purchases, but customers can receive direct deposit payments via their prepaid account, use cards to pay bills online, get cash from an ATM, and even set aside money in a linked savings account.
For folks with limited credit, the RushCard and other Green Dot products provide an essential service, with many different products to choose from.