Green Dot Corp. announced July 26 it would issue and distribute UniRush LLC’s RushCards at retails outlets. The announcement comes just as Green Dot lowered its earnings guidance for the rest of the year. Nonetheless, the move opens up new business channels for both companies. Green Dot is using its recently acquired bank to enter the third-party BIN-sponsorship business, and UniRush, which has relied primarily on Internet distribution, has entered a new sale channel.
The Agreement provides that Green Dot Bank will serve as the exclusive issuer of the retail version of the RushCard, with Green Dot Corporation serving as a co-manager on the portfolio with UniRush. Green Dot has also agreed to make the product available for sale by select Green Dot retail partners nationwide, which includes many of the leading national grocery, mass merchandise, drug and convenience store chains.
Green Dot revised its guidance from an earnings per share range of $1.65 to $1.70, down to $1.29 to $1.32. The company said that increased competition from new entrants to the prepaid market and increased risk controls caused it to revise expectations. Green Dot, which has previously announced that it plans to offer checking accounts and other traditional banking products, seems to be re-evaluating what options are open to it now that it owns a bank and a processor.
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