Green Dot is one of the leading issuers of prepaid cards in the United States. The company also provides banking services to a range of leading companies, including Apple and Uber. Now Green Dot is taking its services one step further by launching its own digital bank, GO2bank, and issuing a secured credit card: the GO2bank Secured Visa.
Green Dot Launches GO2bank
Green Dot’s GO2bank launched in early January and offers a range of digital banking services. These initial services include a savings account that provides 1% APY on savings of up to $5,000 and a checking account that provides up to 7% cash back on purchases with select retailers.
GO2bank is also issuing a credit card: the GO2bank Secured Visa Credit Card. This new secured card replaces Green Dot’s previous secured credit card options: the Green Dot primor® Secured Visa range of credit cards.
The new GO2bank Secured Visa requires a GO2bank account and eligible direct deposits to open. Once a GO2bank customer meets minimum direct deposit requirements, they can use their savings to open a secured card account with a deposit as low as $100. There are no credit checks and no impact on a person’s credit score when opening the card account.
Part of a Long-Term Strategy
Speaking to American Banker, Green Dot’s CEO, Dan Henry, said the GO2bank launch is part of a broader strategy by the company:
Green Dot has introduced a lot of products over the years that aim to solve meaningful financial challenges for people but didn’t necessarily work together and weren’t designed with a long-term strategy and community in mind. GO2bank is not a one-off or short-term product launch — this represents a long-term strategy to deliver meaningful value and differentiated experiences that keep customers for years to come.
New GO2bank Card Similar to Self Visa
The tied bank account with the GO2bank Secured Visa bears some similarities to another secured credit card, the Self Visa® Credit Card. Both cards require an account to open, but Self’s Credit Builder Account functions like a loan rather than savings. Because of this, the Self Visa might be a better bet for those hoping to establish their credit history quickly.
About Green Dot
Green Dot is the world’s largest prepaid card company. Green Dot also operates as a payment platform, with notable companies like Apple, Intuit, and Uber making use of its technologies.
Related Article: Chase Study Finds Growing Confidence in Digital Banking