Green Dot, the technology company with a banking license, reported another strong quarter, and CEO Steve Streit noted the company sees significant growth opportunity in the small business space for its banking-as-a-service product.
The Pasadena, Calif.-based company posted $231 million of revenue, up 14% over last year, and EBITDA of $43 million, a 33% year-over-year increase.
Streit described the growing potential of his company’s BaaS platform on the company’s earnings call yesterday evening:
When a large enterprise decides that they want to create a highly customized and seamlessly integrated bank life product for their customer base, we want to automatically think Green Dot BaaS, who else would you choose. We believe the Green Dot BaaS platform has established itself as the platform choice for anyone serious. And our business development pipeline of new Banking-as-a-Service platform partnerships is extremely robust and well ahead of our expectations.
Also of note was the expansion of retail outlets offering the GoBank mobile checking account product. Streit noted new arrangements with 7-Eleven and CVS, opening 12,000 more outlets, for a total of 48,000, including Walmart, by year’s end.
Streit noted that while Green Dot has historically been a company serving consumers, he sees opportunity for expansion into the small business space, where fintech players such as PayPal and Square have also made great strides. Green Dot offers tax and accounting services to small businesses already through its Santa Barbara, Calif.-based service TPG. Referring to small business accounts, Streit said, “The activity on that side of our world was actually hotter than even the consumer side.” He went on to say the company had been reluctant to advance into this space because of perceived risks or that it was outside the company’s wheelhouse, but that those attitudes are changing.
Speaking of PayPal, Streit disclosed that Green Dot mediates the relationship between PayPal and Walmart, which made headlines a few weeks back:
We’re proud to let you know that this is a Green Dot BaaS-powered program, with both Walmart using our platform to facilitate the transaction on the store side, and PayPal using our platform to generate the bar code to the PayPal customer’s cell phone on the Web-mobile side.
PayPal’s use of the service, as well as ongoing deals with Uber and Apple, provides further evidence that Green Dot’s banking-as-a-service is getting more and more deeply enmeshed in the fintech payments ecosystem.
Green Dot serves some 15 to 20 million customers on a regular basis, Streit said.Like This Post