Green Dot Launches Prepaid MasterCard Tailored for Older Americans

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January 26, 2012 08:30 AM Eastern Time 

Green Dot Will Launch AARP Foundation Prepaid MasterCard®

Card Targeted to the Needs of Older Americans and Those Receiving Federal Benefits Such as Social Security

MONROVIA, Calif.--(BUSINESS WIRE)--Green Dot Corporation (NYSE: GDOT), a provider of widely distributed, low-cost banking and payment solutions to a broad base of U.S. consumers, is working with AARP Foundation and MasterCard to launch the first prepaid card tailored to older Americans. The AARP Foundation Prepaid MasterCard from Green Dot (the “Card”) is ideal for direct deposit of paychecks and federal benefit payments, especially given new Federal requirements that all Social Security recipients obtain payments electronically as of March 1, 2013.

“We are proud to work with the AARP Foundation to offer a dedicated prepaid card program that gives older Americans a highly efficient way to receive their government benefits”

The Card launch online and at Walgreens stores is planned for mid February, with rollouts to more Green Dot retail partners throughout the year. The FDIC insured Card, serviced by Green Dot, has an introductory $0 purchase price and the monthly fee can be waived each billing cycle (regularly $5.95) when (1) at least $250 is direct deposited, or (2) at least $1000 is loaded, or (3) at least 30 qualifying purchases* are posted. Cardholders also have the option of a linked savings account that allows the transfer of funds directly from the Card. The Card and savings account are issued by The Bancorp Bank, Member FDIC.

"Nearly twenty million people age 50+ do not have adequate financial resources. Lack of access to well-designed money management and savings vehicles can keep older underbanked consumers from accumulating sufficient savings and retirement funds,” said Jo Ann Jenkins, AARP Foundation President. "In support of our charitable mission, we worked with Green Dot on its development of a prepaid debit card that offers older Americans a convenient and safe payment method at a low cost. Our combined efforts have resulted in a market-leading card by Green Dot that provides strong consumer protections, asset-building features, and innovative programs that can help move people to greater financial stability."

"We are proud to work with the AARP Foundation to offer a dedicated prepaid card program that gives older Americans a highly efficient way to receive their government benefits," said Steve Streit, Green Dot’s CEO.

For more information please visit www.AARPFoundationCard.com.

*Qualifying purchases include completed transactions where you are paying for goods and services with your card.

This Card is issued by The Bancorp Bank pursuant to license by MasterCard International Incorporated and may be used everywhere Debit MasterCard is accepted. The Bancorp Bank is a wholly owned subsidiary of The Bancorp, Inc. (Nasdaq: TBBK), Member FDIC and is FDIC insured. Additional services provided by Green Dot Corporation. MasterCard is a registered trademark of MasterCard International Incorporated.

The royalties paid by Green Dot to AARP Foundation in connection with the program are used by AARP Foundation to further its charitable purposes.

About Green Dot Corporation

Green Dot is a publicly traded (NYSE:GDOT) bank holding company regulated by the Board of Governors of the Federal Reserve System. The Company provides widely distributed, low cost banking and payment solutions to a broad base of U.S. consumers. Green Dot's products and services include its market leading category of General Purpose Reloadable (GPR) prepaid cards and its industry-leading cash transfer network which are available directly to consumers online and through a network of approximately 58,000 retail stores nationwide where 95% of Americans shop. Green Dot is headquartered in the greater Los Angeles area. For more details, visitwww.greendot.com.

About AARP Foundation

AARP Foundation is AARP's affiliated charity. The Foundation is dedicated to serving vulnerable people 50 and older by creating solutions that help them secure the essentials and achieve their best life. AARP Foundation focuses on: hunger, housing, income and isolation as key mission areas. The Foundation envisions: 'a country free of poverty where no older person feels vulnerable.' Foundation programs are funded by grants, tax-deductible contributions and AARP. For more information about AARP Foundation, please log on towww.aarp.org/foundation.

Debit or Credit? Javelin says Consumers Face Conflicting Messages About Payment Choice

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Javelin’s 2011 Consumer Payments Behavior Report Examines How Financial Institutions Lost the Initial Public Relations Battle Related to the Durbin Amendment

SAN FRANCISCO--(BUSINESS WIRE)--Javelin Strategy & Research’s latest report examines how recent debit card regulations have transformed market incentives for payments, creating a confusing environment for consumers. For years, banks and merchants have actively encouraged debit card use, and 73% of consumers report that they are satisfied with the debit card option. Now, debit card issuers are facing a combined $12.2 billion loss due to revenue-pinching regulations. On the one hand, many FIs are reacting by steering consumers toward more profitable credit cards. On the other hand, most merchants will benefit from Durbin-driven reductions in interchange fees and are encouraging debit card use. However, small-ticket merchants have seen their costs for debit acceptance rise significantly, and these merchants often encourage the use of cash or other payment options rather than more costly debit cards. As a result, consumers are facing a bewildering onslaught of mixed messages about which payment option to use.

“The full effects of Durbin remain to be seen”

FIs especially took a big public relations hit in the last quarter of 2011 when they lost the opportunity to educate their customers about these new regulations, then attempted to impose measures that consumers felt were punitive. As a result, 70% of consumers believe that recent debit card regulations will actually benefit banks, whereas only 30% believe that the regulations will benefit merchants.

“Consumers love their debit cards, but the majority would choose different payment options if they were charged a fee for using debit,” said Beth Robertson, Director of Payments Research at Javelin. “Our data shows that if FIs implemented debit card fees, 32% of consumers would choose cash as their payment option, 25% would pay with a credit card and 26% would switch to another bank that didn’t charge for debit cards. Banks should improve their messaging and educate consumers about new regulations so consumers can understand the effects of their payments choices.”

“The full effects of Durbin remain to be seen,” said James Van Dyke, President of Javelin. “The recession led many people to turn away from credit cards in favor of debit and prepaid cards as ways to control debt, but this trend seems to be slowing as the economy stabilizes. Today, there are more conflicting pressures on payment choice than ever before. Stakeholders should monitor payment trends and identify profitable ways to influence the payments mix.”

Javelin’s report Evolution in Consumer Payments Behavior: How the Durbin Amendment and the Economy Are Driving Payment Changebased on survey data collected from more than 3,200 consumers, examines consumers’ attitudes toward various payment options and scenarios. The report outlines the specific strategies FIs, merchants and payments providers should use to navigate the changing environment and provide consumers with the information they need to make informed payments decisions.

Selected Key Findings from Evolution in Consumer Payments Behavior:

• Cash is the most regularly used payment option: 79% of consumers report that they had made cash purchase within the past seven days.
• 90% of consumers claim they would require a discount of 3% or more to switch to another payment option.

• 72% of underbanked consumers indicate that they most frequently use cash for any type of purchase. Just 6% of these consumers use prepaid cards most frequently.

For additional details or to purchase Javelin’s report, Evolution in Consumer Payments Behavior: How the Durbin Amendment and the Economy Are Driving Payment Change, click HERE.

New, Free GoPayment Credit Card Reader Now Available

Maximize Sales on the Go While Protecting Customer Card Data

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Intuit Inc.’s (NASDAQ:INTU) newly designed GoPayment card reader is now available for free at GoPayment.com.

The GoPayment card reader increases the accuracy of each card swipe and offers best-in-class, end-to-end encryption to protect a customer’s sensitive card data. Intuit redesigned the card reader based on customer feedback asking for a professional, easy-to-use way to process payments wherever they are.Designed for small businesses and anyone who sells products or services on the go, the new GoPayment card reader is a compact, cylinder-shaped device that fits into the audio jack of a mobile phone or tablet. It works with the GoPayment app to help users maximize sales by quickly and accurately swiping a credit or debit card instead of entering data manually.

“What I like about the new reader is pretty simple,” said Dennis McGrath, owner of BBQ2U Cateringin San Diego. “It’s sleek and fits on my smartphone – even with the case on it. The groove is angled, so swiping the credit card feels more natural. The new design helps it fit snugly on my phone so it doesn’t swivel when I’m swiping a card.”

GoPayment helps users never miss a sale by easily processing payments on their smartphone or tablet. It’s ideal for mobile retailers or service providers, such as caterers, photographers, hair stylists, locksmiths and landscapers. It’s affordable with a free app and card reader with competitive, pay-as-you-go pricing. Click here to watch a video about how GoPayment helps real business owners maximize sales. To learn more, go to: GoPayment.com.

Resources:

• GoPayment user videos (http://Intuit-GoPayment.com/uservideo)
• GoPayment Press Kit (http://about.intuit.com/about_intuit/press_room/press_kit/gopayment/)
• GoPayment Blog (http://blog.gopayment.com/)
• GoPayment on Facebook (http://www.facebook.com/#!/IntuitGoPayment
• GoPayment on Twitter (http://twitter.com/gopayment)
• Learn more about how Mobile is Changing Intuit’s Customer’s Lives (http://network.intuit.com/videos/1239064890001/)

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®,Quicken® and TurboTax®, simplify small business management and payment and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found atwww.intuit.com.

Mobile Payments Going Mainstream at CARTES in North America

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Two-day long tracks on mobile payments; more than 80 speakers and a sold-out roster of 100 exhibitors

CARTES in North America 2012

LAS VEGAS--(BUSINESS WIRE)--Just what combination of technology convergence, business partnerships and consumer acceptance points will finally drive the widespread adoption of global mobile payments is at the center of the agenda at the CARTES in North Americaexpo & conference, March 5-7, 2012 in Las Vegas, Nev.

“As we continue to focus on innovation and developing technologies like NFC, we’ll be able to further enhance the consumer experience—from search to purchase opportunities, to instant rebates, to e-commerce.”

With the advent of Google Wallet and a new mobile phone payment system from ISIS as well as global wireless carriers supporting standards for Near-Field Communication (NFC)-based payments, 2012 is poised to be the year that new mobile payment technology moves into the consumer mainstream. CARTES in North America will host two day-long tracks, March 5-6, on Global Mobile Payment & Services Initiatives, featuring speakers from the United States, Canada and Europe addressing topics ranging from deploying NFC payments and the changing business case for banks, to retailer adoption, consumer acceptance and security.

Tim Jefferson, managing director of The Human Chain, will present a keynote address on Mobile Payment and NFC on March 5 and chair the day’s Global Mobile Payment track. “Making payments via a smart phone really represents a threshold for wider adoption of a whole host of new NFC-driven mobile smart technologies connecting companies with their customers,” said Jefferson.

Other mobile payments highlights on March 5 include platinum sponsor ABnote presenting a session on “A Pathway Approach to Deploying NFC Payment”, and gold sponsor MasterCard Worldwide speaking on “The Commercial Launch of Mobile Payments Using NFC-Enabled Phones.” “Today, people want the freedom to pay in a way that best fits their needs and lifestyles with a simple tap, click or touch,” said James Anderson, Senior Vice President, Mobile and Emerging Payments at MasterCard. “As we continue to focus on innovation and developing technologies like NFC, we’ll be able to further enhance the consumer experience—from search to purchase opportunities, to instant rebates, to e-commerce.”

In addition, Canadian-based Ipsos will present the results of a consumer survey on mobile payments during the session, “Are Consumers Ready for Mobile Payments?”

Security is the focus of the CARTES in North America Global Mobile Payment and Services Track on March 6. Dawood Khan, a partner at Red Mobile in Canada will chair this track which features nine sessions on “The Mobile: A Trusted Environment?,” “Certificates & Standardization,” and “Secure Identity on the Mobile Device.”

The first CARTES in North America expo and conference will bring smart technologies, m-commerce and digital security authorities and leading technology providers to Las Vegas, Nevada for 70 conference sessions on topics ranging from NFC, mobile payment and EMV Deployments to trust, privacy and IT security. The event will feature technology and application demonstrations by a sold-out roster of100 conference exhibitors.

CARTES in North America is produced by Comexposium. Sponsors and exhibitors include ABnote, American Express, 3M, CPI Card Group, HID, MasterCard Worldwide, Oberthur, Renesas, Thales, Verifone. Event partners include the BayPay Forum, Eurosmart, NFC Forum, GlobalPlatform, Global Prepaid Exchange, The Human Chain, The MULTOS Consortium, OATH, SIMalliance, The Smart Payment Association and WIMA NFC USA.

Follow the conversation on CARTES in North America via Twitter and on Facebook. Accredited members of the media are invited to register for free at http://www.cartes-northamerica.com/Forms/Press-Accreditation. For more information on CARTES in North America, visit www.CARTES-northamerica.com.

About CARTES

The CARTES Network encompasses the leading international and regional exhibitions and conferences devoted to smart technologies. From its beginnings in Paris in 1985, CARTES has grown to become the world number one security and payment event, gathering 450 exhibitors and 20,000 visitors from 142 countries. Since 2010, CARTES exhibitions and conferences have taken place in Asia and are now being introduced in North America. CARTES events are organized by COMEXPOSIUM, the leading French professional trade fairs organizer, offering a high level of service and premium quality standards for exhibitors and visitors.