Late last night, Green Dot announced that it will acquire the Wal-Mart reloadable prepaid card program (Wal-Mart MoneyCard) currently issued by GE Capital Retail Bank.
The MoneyCard is one of the largest prepaid cards in the country. When combined with Green Dot,
Green Dot Bank will have a sizable lead over any other bank in the prepaid space. Likewise, Green Dot will lap the next largest program manager, NetSpend, by another large increment.
Prepaid card deposits were only a fraction of GE Capital Retail's balance sheet. As such, Green Dot Bank will not become a large bank as defined under Durbin. This could mean that Wal-Mart
MoneyCard consumers suddenly find that their cards will be able to do more, most notable of which is the possibility that those cards will now come with online billpay.