Green Dot 2015 Annual Report Download - page 9

3
can add funds directly to accounts we issue and accounts issued by our network acceptance members, to the extent
those accounts are eligible to receive recurring deposits, through an automated POS swipe reload transaction. To
complete transactions, consumers pay the cashier the desired amount to be reloaded, plus a service fee, and funds
are reloaded onto the GPR card at the point of sale without further action required on the part of the consumer.
Historically, consumers were also able to conduct cash loading transactions using our MoneyPak PIN product, which
prior to 2014 was offered in all of the retail locations where our GPR cards were sold. We began phasing out the
MoneyPak PIN product in 2014 and discontinued offering that product by the end of the first quarter of 2015. We plan
to introduce a next-generation MoneyPak product in the first half of 2016 across the store locations of our retail
distributors.
Tax Refund Processing Services. We provide the processing technology that facilitates the receipt of a taxpayer's
refund proceeds. We generate tax refund processing service revenues when a customer of a third party tax preparation
company chooses to pay their tax preparation fee using our tax refund processing services, whereby we deduct the
costs of the tax preparation service and our processing service from the taxpayer's refund, and remit the remaining
net balance to the taxpayer per their instructions.
Our Distribution Channels
We achieve broad distribution of our products and services through distribution arrangements with more than
100,000 "brick and mortar" retail locations, digital and direct mail customer acquisition sources, and the leading app
stores. Accounts issued by us or our network acceptance members can be reloaded at these brick and mortar retail
locations.
Most of our arrangements for brick and mortar retail locations have been in effect with our distributors for several
years. These retail distributors have contracts with us, subject to termination rights, which expire at various dates
through 2020. In general, our agreements with our retail distributors give us the right to offer GPR deposit account
programs and reload services in their retail locations and require us to share with them by way of commissions the
revenues generated through sales of these cards and reload services. We and the retail distributors generally also
agree to certain marketing arrangements, such as promotions and advertising.
Our Relationship with Walmart. Walmart is our largest retail distributor. Green Dot Corporation has been the
provider of Walmart-branded GPR cards sold at Walmart since the initiation of the Walmart MoneyCard program in
2007, and Green Dot Bank has been the issuer of those cards since early 2014. Pursuant to our agreement with
Walmart, Green Dot designs and delivers the Walmart MoneyCard product and provides all ongoing program support,
including network IT, regulatory and legal compliance, website functionality, customer service and loss management.
Walmart displays and sells the cards and Green Dot Bank serves as the issuer of the cards and holds the associated
FDIC-insured deposits. All Walmart MoneyCard products are reloadable exclusively on the Green Dot Network. In
2013, we began offering our Green Dot-branded cards at Walmart, providing consumers the choice to purchase either
Green Dot-branded cards or any of the Walmart MoneyCard products, and during the fourth quarter of 2014, our
GoBank checking account product was launched and made available in a retail setting at Walmart. Our operating
revenues derived from products and services sold at the store locations of Walmart represented approximately 46%,
54%, and 64% of our total operating revenues for the years ended December 31, 2015, 2014, and 2013, respectively.
The term of our Walmart MoneyCard agreement expires on May 1, 2020, with an automatic renewal clause for an
additional period of two years, subject to certain terms as discussed in the agreement. This agreement can in limited
circumstances, such as our failure to meet agreed-upon service levels and certain changes in control, be terminated
by Walmart on relatively short notice.
Direct Channels. An increasing portion of our account sales are generated from digital and direct mail customer
acquisition sources and we expect this trend to accelerate over time. Customers who acquire our accounts through
these channels and pass identity verification typically receive an unfunded card in the mail and then can reload the
card either through a cash reload or an ACH deposit transaction.
Network Acceptance Members. A large number of program managers that offer their own prepaid cards accept
funds through the Green Dot Network. We provide reload services to more than 120 third-party prepaid card programs,
including programs offered by UniRush and H&R Block. MasterCard’s RePower Reload Network also uses the Green
Dot Network to facilitate cash reloads for its own member programs. In addition, we provide reload services to other
kinds of financial services firms and their customers.
Tax Preparation Businesses. Our tax refund processing services are available to consumers through tax preparers
in three core distribution channels: franchise tax preparers, independent tax preparers utilizing professional tax software,
and taxpayers utilizing online tax preparation services. In general, our distribution agreements consist of revenue-
sharing arrangements under which we allow our channel partners to access and utilize our processing and settlement