PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

H&R Block Wants to Expand its Banking Services to Serve Clients Year-Round

By Sarah Grotta
March 29, 2021
in Analysts Coverage, Banking, Debit, Emerging Payments, Partnerships, Prepaid
0
0
SHARES
0
VIEWS
Share on LinkedIn
businessman bank money online banking vector illustration

businessman bank money online banking vector illustration

H&R Block has had an interesting relationship with banking over the years.  It used to have a banking charter to offer banking services to its tax preparation clients but it relinquished the charter back in 2014.  It didn’t completely get away from offering banking services, however as it struck a deal with Axos Bank to offer the Emerald prepaid card. 

According to American Banker, the Axos Bank deal came to an end when Axos Bank crossed the $10 Billion asset threshold, which meant that H&R Block could no longer earn unregulated interchange through that partnership.  This only underscores the importance of interchange to support low-cost or no-cost financial services.

Now H&R Block is partnering with Meta Financial to offer a broad range of financial services and engage with its clients beyond tax season:

The Kansas City, Mo.-based firm has long enabled its customers to deposit their annual tax refunds on its Emerald prepaid debit card. But starting next tax season, Block plans to offer a digital bank account that will encourage steady year-round use.

While H&R Block has not released product details, company executives say that they plan to focus on existing customers, including many with low or moderate incomes, who lack strong banking relationships. “It will be very low-fee, high-featured and targeting the refund as the event to fund the account,” CEO Jeff Jones said in a recent interview.

H&R Block will join a crowded field of firms that offer mobile-centric accounts aimed at those who are unhappy with the fees charged by traditional banks. Chime, Varo, and Green Dot are among the top competitors.

H&R Block has a few advantages, including strong brand recognition and an existing base of 8 million customers who fit the profile that the company is targeting. In 2019, some 5.4% of U.S. households lacked an account at a bank or credit union, while 8.5% of households used reloadable prepaid debit cards, according to data from the Federal Deposit Insurance Corp.

The increasing popularity of do-it-yourself tax prep options, which may have been accelerated by the COVID-19 pandemic, is acting as a headwind to H&R Block, according to Mark Palmer, an analyst at BTIG. But he wrote in a recent research note that the company could get a boost in 2021 as consumers try to make sense of the tax treatment of income and capital gains generated during the pandemic.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on LinkedIn
Tags: BankingBanking CharterFinancial ServicesH&R BlockMeta FinancialPartnershipsPrepaidTaxes

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    circle stablecoin

    As Prepaid Fraud Evolves, So Do the Rules

    September 21, 2026
    bots fraud, bank security in data sharing, J.P. Morgan fraud protection TSYS, 3D Secure 2.0

    The Evolution of 3D Secure Puts it at the Center of Fraud Prevention

    September 18, 2026
    fraud detection signals

    Why Fraudsters Look Trustworthy and Good Customers Look Suspicious

    September 17, 2026
    Fraud Monitoring, Nacha ACH Rules, Same Day ACH

    10 Years Running, Same Day ACH Continues to Break New Ground

    September 16, 2026
    stablecoin infrastructure

    To Unlock Stablecoins’ Potential, Infrastructure Gaps Must Be Resolved

    September 15, 2026
    Latin America payment orchestration

    Navigating Latin America’s Complex Payment Ecosystem

    September 14, 2026
    upi biometric

    Beyond Authentication: Rethinking Digital Identity Security

    September 11, 2026
    Fraud Monitoring, Nacha ACH Rules, Same Day ACH

    Nacha’s Upcoming Rules Refresh Is All About Improving Clarity

    September 10, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result