Seeking Alpha is reporting that Walmart is expected to either not renew or vastly restructure the arrangement to cut Green Dot’s commission rate at the end of its current contract. Seeking Alpha reports that just about any scenario is likely to be damaging to Green Dot. Seeking Alpha claims that Green Dot relied on Walmart for 64 percent of its total operating revenues and more than of 82 percent of its total card packs sold in 2013.
The Walmart MoneyCard by Green Dot is expensive compared to the newest prepaid card alternatives. The Walmart MoneyCard sells for about $3, charges a $3 monthly fee without direct deposit, plus another $3 each time to reload money on to the card.
A better choice for many consumers may be the American Express Bluebird Card. The BlueBird Card is sold in Walmart for a one-time $5 fee, and includes free reloading and no monthly fees.
One Hail Mary pass for Green Dot might be to slash fees to compete with BlueBird and other newer alternatives now on the market.
What do you think?