Green Dot Corp. announced on Monday that it has signed an agreement to sell its cards in Dollar Tree Inc. stores. The agreement helps to offset its reliance on Wal-Mart Stores Inc., which makes up a large chunk of the company’s sales and has been identified as a weakness by some observers.
Green Dot signed a new multi-year exclusive distribution agreement with Dollar Tree, Inc. Green Dot expects to launch a broad portfolio of its network-branded general purpose reloadable (GPR) card and MoneyPak reload products chain-wide within Dollar Tree in the second half of 2012, which would add more than 4,300 locations to Green Dot’s expansive national retail distribution footprint and bring the total to approximately 65,000 locations upon full roll out. These FDIC-insured Green Dot cards will be issued by Green Dot Bank.
The move also shows that Green Dot is making use of its newly acquired bank, having it issue the cards sold through Dollar Tree. At the same time as announcing the new distribution deal, Green Dot also announced that it extended its contracts with Wal-Mart and PayPal, showing that it is maintaining its current business while expanding its options.
Click here to read more from the Green Dot press release.
