Green Dot Corp. reached a agreement with Wal-Mart Stores Inc. to
continue as the issuing bank for retailer's prepaid reloadable
debit card program for an additional five years.
Green Dot shares surged 29% to $19.76 in after-hours
trading.
The companies had worked together on Wal-Mart's MoneyCard
program since its 2006 inception, but Green Dot shares have
declined 25% so far this year through Monday's close, partly on
concerns about the possibility of losing the business.
The new term, which became effective May 1, replaces an
agreement that was already extended to the end of the year.
Green Dot also worked with the retailer on last year's rollout
of a checking account service called GoBank, which doesn't charge
overdraft fees, unlike other the banks housed within the retail
giant.
Green Dot separately unveiled a stock buyback program on Monday
worth $150 million.
Write to Josh Beckerman at josh.beckerman@wsj.com
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