Green Dot 2014 Annual Report Download - page 13

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Reload Networks
We offer our 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.
Tax Refund Processing
Our tax refund processing services compete directly with similar processing technologies and settlement capabilities
offered by companies such as Refundo, Refund Advantage, Republic Bank and others. Furthermore, other entities,
like Jackson Hewitt and H&R Block, have either fully or partially internally-developed processing and settlement
capabilities to self-provide services similar to ours. It is possible that our current or potentially new distribution partners
may seek to develop their own internal capabilities that compete with our tax refund processing services.
Personal Banking Services
With the nationwide launch of our first checking account product in June 2013, we have expanded into the market
for consumer checking accounts. In addition to availability via digital downloading from leading app stores, since the
fourth quarter of 2014, this product has been offered in a retail setting at Walmart under the GoBank brand. 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
than we do. Many of these banks also have other assets that could give them an advantage, including broader ranges
of product offerings and/or retail branch networks. We believe that our consumer checking account products will be
differentiated by their innovative technological features, innovative distribution model, consumer-friendly pricing, and
branding. However, there can be no assurance that GoBank will be adopted by consumers or otherwise achieve
commercial success.
Intellectual Property
We rely on a combination of patent, trademark and copyright laws and trade secret protections in the United States,
as well as confidentiality procedures and contractual provisions, to protect the intellectual property rights related to our
products and services.
We own several trademarks, including Green Dot and GoBank. These assets are essential to our business. Through
agreements with our network acceptance members, retail distributors and customers, we authorize and monitor the
use of our trademarks in connection with their activities with us.
Our patent portfolio currently consists of seven patents and three patent applications. The term of the patents we
hold is, on average, twenty years. We feel our patents and applications are essential to our business and help to
differentiate our products and services from those of our competitors.
The industries in which we compete are characterized by rapidly changing technology, a large number of patents,
and frequent claims and related litigation regarding patent and other intellectual property rights. There can be no
assurance that our patents and other proprietary rights will not be challenged, invalidated, or circumvented; that others
will not assert intellectual property rights to technologies that are relevant to us; or that our rights will give us a competitive
advantage. In addition, the laws of some foreign countries may not protect our proprietary rights to the same extent
as the laws of the United States. The risks associated with patents and intellectual property are more fully discussed
in “Item 1A. Risk Factors,” including the risk factors entitled “We must adequately protect our brand and the intellectual
property rights related to our products and services and avoid infringing on the proprietary rights of others,” and “We
must be able to operate and scale our technology effectively to manage any future growth.”
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