Fees are growing faster than spend at Bancorp Bank. Bancorp says that its profits from the prepaid debit cards that it issues are being driven by higher non-interest income, rather than by changes in gross dollar volume. True, spending on prepaid cards did increase nineteen percent, but fee
income grew 63 percent.
TSYS borrows heavily to buy NetSpend. TSYS says that it borrowed $1.1 billion in order to buy NetSpend. TSYS paid $1.4 billion to buy the company. The deal was announced in February and finalized on July 1st. Later, TSYS borrowed approximately $130 million from a consortium of lenders, including GE Capital Bank, GE Capital Corporation, Silicon Valley Bank, PNC Bank, and M&T Bank. A year ago, TSYS had less than $600 million in debt.
NetSpend Direct Deposit Accounts Surge: NetSpend had 1.7 million accounts set up to take a direct deposit at the end of March 2013. That represents an increase of 67 percent in just 12 months.