22 November 2010

In prepaid cards, Green Dot swipes NetSpend | Reuters

RPT-BUY OR SELL-In prepaid cards, Green Dot swipes NetSpend Reuters
Americans are expected to more than treble the amount of money loaded on to prepaid debit cards to $118 billion within two years -- a lucrative prize for two small, pure-play companies competing in this growth market.

Both Green Dot Corp (GDOT.N) and NetSpend Holdings (NTSP.O) recently listed, but the former's ties with major retailers like minority stakeholder Wal-Mart Stores Inc (WMT.N) gives it the edge, analysts say.

The fast-growth prepaid card sector is aimed primarily at younger, low-income and under-banked consumers who rely on cash and don't have much access to credit.