Green Dot 2012 Annual Report Download - page 16

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6
Reload Networks
While we believe our Green Dot Network is the leading reload network for prepaid cards in the United States, a
growing number of companies are attempting to establish and grow their own reload networks. In this market, new
companies, or alliances among existing companies, may be formed that rapidly achieve a significant market position.
Many of these companies are substantially larger than we are and have greater resources, larger and more diversified
customer bases and greater name recognition than we do. Our primary competitors in the reload network services
market are: Visa, Western Union, MoneyGram, Blackhawk Network, Inc., and Incomm. Visa has broad brand recognition
and a large base of merchant acquiring and card issuing banks. Western Union, MoneyGram, Blackhawk Network,
Inc., and Incomm each have a national network of retail and/or agent locations. In addition, we compete for consumers
and billers with financial institutions that provide their retail customers with billing, payment and funds transfer services.
Many of these institutions are substantially larger and have greater resources, larger and more diversified customer
bases and greater brand recognition than we do.
We believe that the principal competitive factors for reload network services include:
• the number and quality of retail locations;
• brand recognition;
• product and service functionality;
• number of cardholders and customers using the service;
• reliability of the service;
• consistency of the user experience
• retail price;
• enterprise-class and scalable IT;
• ability to integrate quickly with multiple payment platforms and distributors;
• customer support capabilities; and
• compliance and regulatory capabilities.
We believe the Green Dot Network competes favorably on each of these factors.
Prepaid Card Distribution
We compete against the full spectrum of prepaid card distributors and third-party processors that sell competing
prepaid card programs through retail and online channels. Many of these institutions are substantially larger and have
greater resources, larger and more diversified customer bases and greater brand recognition than we do. Many of
these companies can also leverage their extensive customer bases and adopt aggressive pricing policies to gain
market share. As new payment methods are developed, we also expect to encounter competition from new entrants.
Our primary competitors in the prepaid card distribution market are: InComm, Blackhawk Network, Inc., First Data,
NetSpend, and American Express. In addition, we face potential competition from Western Union, MoneyGram and
a number of retail banks if they enter this market.
We believe that the principal competitive factors for the prepaid card distribution market include:
• brand recognition with consumers and retailers;
• the ability to reload funds;
• ability to develop and maintain strong relationship with retail distributors;
• compliance and regulatory capabilities;
• pricing; and
• large customer base.
We believe our products compete favorably on each of these factors.
Personal Banking Services
With the recent Beta launch of GoBank, we are entering the market for consumer checking accounts. In this
market we compete against a wide range of both traditional and non-traditional banks, including the largest banks.
Many of these banks have greater resources, larger and more diversified customer bases and greater brand recognition