Green Dot Enters the Online Lending Business
Prepaid card provider Green Dot is branching out to new areas of the payment sector, thanks to the launch of their new online lending marketplace. The program called Green Dot Money is designed to match people with low to moderate incomes with lenders who service that audience.
Green Dot Money does not provide any of the funding for the loans or assume any of the risk. Instead, it pairs consumers with third-party lenders that front the money. This money can be issued on a Green Dot prepaid debit card, or it can be deposited into the person’s checking account.
Since many low-income consumers are also unbanked or underbanked, providing an option for them to get a loan funded to a prepaid card fits perfectly with Green Dot’s target audience. The lenders in the network work with people who have a poor, limited, or no credit history, with varying repayment options to suit each person’s needs.
Last month, Green Dot relaunched its MoneyPak program for reloading payment cards, making it easier for users to add funds to their accounts. Each MoneyPak card costs $5.95 to purchase, and can be loaded with $20 to $500.