Furthers strategy to vertically integrate platform, positive for long-term margin expansion
Green Dot currently uses TSYS for portions of its transaction processing
and payment network connectivity. Green Dot recently renewed its
outsourced processing agreement with TSYS for an additional two-year
term. During this period, Green Dot expects to transition those services
from TSYS to its in-house processing solution built on the assets
acquired from ECL. A dedicated internal team will perform the processing
conversion, led by
"Bringing key remaining elements of our transaction processing engine
in-house through this asset purchase builds upon our recent bank
acquisition, furthering our overall strategy to vertically integrate the
platform. Through this series of actions, Green Dot expects to benefit
from faster speed to market for product development, more flexibility in
serving its customers, and reduced operational expenses," said
“Approximately one-third of Green Dot’s total processing expenses
consists of fees paid to payment processors like TSYS and to Synovus,
one of our issuing bank partners. We expect that integrating our recent
acquisitions of
Green Dot will share more details about its overall vertical integration
strategy with analysts and investors during its conference call to
discuss 4Q results on
About Green Dot
Green Dot is a publicly traded (NYSE:GDOT) bank holding company
regulated by the Board of Governors of the Federal Reserve System. The
Company provides widely distributed, low cost banking and payment
solutions to a broad base of U.S. consumers. Green Dot's products and
services include its market leading category of General Purpose
Reloadable (GPR) prepaid cards and its industry-leading cash transfer
network which are available directly to consumers online and through a
network of approximately 58,000 retail stores nationwide where 95% of
Americans shop. Green Dot is headquartered in the greater
Forward-Looking Statements
This press release contains forward-looking statements, which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements include, among other
things, statements regarding cost savings from Green Dot’s recent
acquisitions. Actual results may differ materially from those contained
in the forward-looking statements contained in this press release. A
wide-variety of potential risks, uncertainties, and other factors could
materially affect our ability to achieve the results expressed or
implied by Green Dot's forward-looking statements, including among
others: Green Dot’s limited experience with acquiring companies and
technologies, potential difficulties in integrating operations of
acquired companies and acquired technologies, any unexpected delays in
Green Dot’s development of its card issuing and processing capabilities
and any unexpected increases in Green Dot’s other operating expenses.
Additional risks and uncertainties are detailed in Green Dot’s filings
with the
Source:
Green Dot Corporation
Investor Relations
Christopher Mammone,
626-739-3942
IR@greendot.com
or
Media
Relations
Liz Brady, 646-277-1226