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.
Latest No / Limited Credit Card News
In the run-up to the new academic year, Capital One recently added two decent products to their line-up of student credit cards, giving college students more opportunities to build credit and earn valuable rewards at the same time: the Capital One SavorOne Student Cash Rewards Credit Card and the Capital One Quicksilver Student Cash Rewards Credit Card. Two new cards are student versions of their rewards counterparts: the Capital […]
So far, no one can say for sure when the coronavirus pandemic will end. To assess the current financial situation of Americans, CreditCards.com has recently conducted two surveys of credit card debt during the COVID-19 outbreak. The surveys were conducted in March and April with over 2,000 U.S. adult respondents. Here are the key findings: […]
A recent CreditCards.com poll showed that 6 million or 8% of parents in the U.S. have at least one child using a credit card. Of course, children can’t apply for their own credit card until they turn at least 18, but most issuers allow to add them to their parents’ card accounts as authorized users.
The wedding season is coming up—meaning brides and grooms-to-be are busy tasting wedding cakes, refining guest lists, and booking photographers. But there’s something else they should add to their to-do list, financial advisors warn.
Webbank, a state-chartered industrial bank headquartered in Salt Lake City, Utah, has just introduced the enhanced cash back for its Petal® 2
Cash Back, No Fees Visa® Credit Card. Starting December 19, all Petal cardholders who use the Petal mobile app can notice new special offers. These deals are supposed to give cardmembers access to up to 10% cash back with eligible merchants […]