BENTONVILLE, Ark.—Don’t expect Walmart to exit the debit card space anytime soon, as Green Dot has reached an agreement with the retailer to continue as the issuing bank for the merchant’s prepaid reloadable debit card program for an additional five years.
“The companies had worked together on Walmart's MoneyCard program since its 2006 inception, but Green Dot shares have declined 25% so far this year through Monday's close, partly on concerns about the possibility of losing the business,” explained Bill Hardekopf, CEO of LowCards.com, Birmingham, Ala.
The new term, which became effective May 1, replaces an agreement that was already extended to the end of the year, the Wall Street Journal reported. Green Dot also worked with the retailer on last year's rollout of a checking account service called GoBank, which doesn't charge overdraft fees.