Green Dot Corporation (NYSE: GDOT), a provider of widely distributed, low-cost banking and payment solutions to a broad base of U.S. consumers, is working with AARP Foundation and MasterCard to launch the first prepaid card tailored to older Americans. The AARP Foundation Prepaid MasterCard from Green Dot (the “Card”) is ideal for direct deposit of paychecks and federal benefit payments, especially given new Federal requirements that all Social Security recipients obtain payments electronically as of March 1, 2013.
The Card launch online and at Walgreens stores is planned for mid February, with rollouts to more Green Dot retail partners throughout the year. The FDIC insured Card, serviced by Green Dot, has an introductory $0 purchase price and the monthly fee can be waived each billing cycle (regularly $5.95) when (1) at least $250 is direct deposited, or (2) at least $1000 is loaded, or (3) at least 30 qualifying purchases* are posted. Cardholders also have the option of a linked savings account that allows the transfer of funds directly from the Card. The Card and savings account are issued by The Bancorp Bank, Member FDIC.
"Nearly twenty million people age 50+ do not have adequate financial resources. Lack of access to well-designed money management and savings vehicles can keep older underbanked consumers from accumulating sufficient savings and retirement funds,” said Jo Ann Jenkins, AARP Foundation President. "In support of our charitable mission, we worked with Green Dot on its development of a prepaid debit card that offers older Americans a convenient and safe payment method at a low cost. Our combined efforts have resulted in a market-leading card by Green Dot that provides strong consumer protections, asset-building features, and innovative programs that can help move people to greater financial stability."
"We are proud to work with the AARP Foundation to offer a dedicated prepaid card program that gives older Americans a highly efficient way to receive their government benefits," said Steve Streit, Green Dot’s CEO.