On 21st April 2014, Prepaid Cards and Financial Services Provider NetSpend, announced its partnership with Western Union in order to develop an innovative co-branded prepaid card. The card will be made available later in 2014, and further details on card pricing, availability and features will follow the product launch says the company.
"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 NetSpend CEO, Dan Henry. “Our two companies share a commitment to giving customers more and better choices for managing their money,” he added.
- Approximately 68 Mn Americans are financially underserved or lack access to traditional forms of banking, According to the Center for Financial Services Innovation (CFSI).
- Many of these consumers are turning to prepaid cards to spend, save and manage their money.
- The FDIC estimates that from 2009 to 2011, the percentage of unbanked households that used a prepaid card climbed from 12% to almost 18%.
NetSpend and Western Union will develop the co-branded card’s custom features jointly, via NetSpend’s proprietary payments platform, and both companies plan to deliver the card through a portion of their combined distribution networks later this year.
NetSpend maintains an extensive network of 70,000 distribution locations and 130,000 reload points. Western Union offers its services in the U.S. through a network that includes banks, national retail and grocery chains and independent locations.