News
Report explores the new prepaid environment
Companies must find partners and build efficient value chains if they are to survive market challenges, a new report says.
May 11, 2015
Mercator Advisory Group has published a new research note that examines how two quiet deals have expanded the Green Dot Corp. distribution network and reduced its reliance on Walmart for retail distribution.
"Green Dot has made a strategic move that diversifies its prepaid portfolio with its purchases of AccountNow and AchieveCard," said Ben Jackson, director of the Mercator prepaid advisory service.
The note, "Seeking Pastures Beyond Walmart: Green Dot Buys Distribution Diversity," examines how the prepaid industry has begun to change and underscores the difficulties that confront single-product prepaid businesses.
As the industry matures, companies will discover that they need to find partners and build efficient value chains if they are to survive in the new environment, the report asserts.
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Highlights of the note:
- a description of the two program managers acquired by Green Dot;
- a discussion of the prepaid value chain and how Green Dot will gain efficiencies form the two deals; and
- examples of ancillary benefits to Green Dot derived from the deals.
The research note is nine pages long and includes four exhibits. Companies mentioned: AccountNow; AchieveCard; Green Dot, MasterCard; TSYS; and Walmart.
