New York City Wal-Mart Stores has taken a minority stake in the rapidly expanding financial company Green Dot. Green Dot is the exclusive provider of prepaid debit cards sold in Wal-Mart's MoneyCard program, started in 2010. That agreement has been extended to 2015.
In a filing with the Securities and Exchange Commission, Green Dot, which has filed for a proposed $150 million initial public offering but has not gone public yet, said it issued Wal-Mart 2.2 million shares stock in May, less than 1% of the company.
Green Dot offers prepaid debit cards in about 50,000 retail store locations including Walmart, Walgreens, CVS, Rite Aid and other locations.
The company is seeking federal and state approval to acquire its own bank, having reached agreement in February to acquire Bonneville Bank, a small Utah-based commercial bank. Wal-Mart abandoned its own bid to acquire a banking license in 2007, amid opposition from the banking industry and political opponents. It has subsequently focused on developing financial services with partners including Green Dot.