Western Union and NetSpend to Team up on Prepaid Card
NetSpend has a long history in the prepaid card industry, and it will soon have another card to add to its portfolio. The new co-branded prepaid card will be the result of a partnership with worldwide money processor, Western Union.
NetSpend cards and Western Union processing services are available at many grocery stores, check cashing businesses and retail stores. These companies both target the unbanked market by offering ways for customers to send, receive and spend money. Last year, Western Union moved more than $82 billion between customers and completed over 242 million consumer transactions around the world.
There are not many details regarding the fees for the new card. It may follow the same fee structure as other NetSpend cards, with a savings opportunity for Western Union transactions. Once the card is launched, it will become available through more than 70,000 distribution centers.
The card is expected to launch later this year.
“Combining the strengths of Western Union’s global brand and expertise in moving money with NetSpend’s deep prepaid knowledge and unique product capabilities, creates an incredible opportunity for us to better serve an underserved market,” said Dan Henry, chief executive officer of NetSpend.