Green Dot is what many fintech companies wish to grow up into. At least according to their CEO Steven Streit. The bank has the technology and the banking background, which many fintechs are missing these days.
It also owns a real live bank.
The next sector this “fintech dream” will be looking at is payments processing.
“Our money processing division, where MoneyPak and our swipe reload businesses live, is a real fertile opportunity for us,” Streit said during the JPMorgan Fintech and Specialty Finance conference this morning. “In fact, most of the transformative ideas are in money processing these days. We have stumbled on this faster payments thing, and we see a lot of business opportunity there now.”
The on-demand or gig economy, specifically, drives the “transformative” development in the money processing space, according to Streit. “[Gig economy] is a real part of the economy. We have designed business to business products to cater to this space, and build out this per-click processing model.”
The instant payments feature has been a “real hit” among Uber drivers, Streit said during the company’s earnings call earlier this month.
We wondered whether the availability of instant pay to any debit card would harm GoBank checking account enrollments, but in fact adoption of both services is growing nicely. The Any Debit program in particular has scaled very fast, with millions of transactions completed so far. We are very pleased to serve as the Bank of Uber for these innovative offerings.
The CEO emphasized that the prepaid card space is still Green Dot’s core business, with customers “engaging better” with the new products, including two relatively new credit offerings.Like This Post