Green Dot 2015 Annual Report Download - page 11

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competitors can leverage their size, financial wherewithal, brand awareness, pricing power and technological assets
to compete with us.
Prepaid Card Issuance and Program Management
We offer branded and private label deposit account card programs that directly compete with other banks that
issue prepaid cards and other program managers that provide turn-key services for prepaid card programs. Primary
competitors in this business include traditional credit, debit and prepaid card account issuers and prepaid card program
managers like Chase, USBank, American Express, First Data, NetSpend/TSYS, UniRush, InComm, Western Union,
MoneyGram, and Blackhawk Network Inc. In addition, from time to time, new entrants introduce prepaid card products
or other products that seek to target that similar customer that could increase competition in this market.
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.
Consumer Banking Services
With our GoBank product, we have expanded into 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 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 are differentiated
by their innovative technological features, innovative distribution model, consumer-friendly pricing, and branding.
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. 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 eight patents and ten patent applications. The term of the patents we hold
is, on average, twenty years. We feel our patents and applications are important 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