Green Dot 2013 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2013 Green Dot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

6
First Data, NetSpend, AccountNow, UniRush, Western Union and MoneyGram. In addition, from time to time, new
entrants, such as T-Mobile, introduce prepaid card products that could increase competition in this market. Our Green
Dot-branded cards also compete with our co-branded GPR cards, such as the Walmart MoneyCard.
We believe that the principal competitive factors for the prepaid card issuance and program management market
include:
• breadth of distribution;
• brand recognition;
• the ability to reload funds;
• compliance and regulatory capabilities;
• enterprise-class and scalable IT;
• customer support capabilities; and
• pricing.
We believe our products compete favorably on each of these factors.
Reload Networks
We offer our MoneyPak and POS swipe reload proprietary products, which enable cash loading and transfer
services through our Green Dot Network. 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
Our products and services are available to consumers at more than 90,000 retailers nationwide, online and via
leading app stores. 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