News

NetSpend, Skylight merge; become single prepaid-card provider

June 26, 2008

AUSTIN, Texas — NetSpend Corp., provider of prepaid reloadable-debit cards in the United States, and Skylight Financial Inc., a debit-card provider, expect to merge their business operations, forming one of the largest private companies dedicated to providing financial services to unbanked and underbanked consumers in the United States.

Accoriding to a news release, NetSpend has issued more than 14 million prepaid debit and gift cards, and has more than 30,000 card-purchase locations and approximately 65,000 reload locations.

NetSpend also offers full self-service sales and delivery capabilities through its Web and mobile platforms.

Like NetSpend, Skylight ialso targets services toward unbanked and underbanked consumers in the United States. Skylight has established itself as a corporate payroll and government-benefits card provider, and has strategic partnerships with U.S. Bank and SunTrust. The company also has amassed more than 1,000 corporate clients for its debit products.

NetSpend's headquarters will remain in Austin, Texas, and Skylight will continue to operate out of its office in Atlanta. The transaction is expected to close during the third quarter of the year.

Skylight is expected to continue operating under the Skylight name, for an undetermined amount of time, as a subsidiary of NetSpend Holdings Inc., NetSpend Corp.'s parent.