Monday, October 8, 2012
Green Dot Shares Hit By Amex, Walmart Deal
Monrovia-based prepaid card provider Green Dot was being battered in the markets this morning, after Walmart and American Express announced a deal to create a new, prepaid card called Bluebird. Walmart and Amex said the new, reloadable prepaid card will have no monthly, annual, or overdraft fees and be distributed via Walmart's stores. Green Dot--one of Southern California's startup success stories--rose to prominence via its relationship with Walmart, which has been its biggest source of customers since before its IPO. Green Dot had dropped at least 17 percent in morning trading after the news was announced by American Express and Walmart. Before its IPO, Green Dot had been venture backed by the Tech Coast Angels and Sequoia Capital, and its IPO was the most successful exit, ever, for many of the Tech Coast Angels.