GDOT stock is making a solid move in the early session on Wednesday after Green Dot Corporation’s (NYSE:GDOT) partnership on the Walmart MoneyCard program has been extended for another seven years.
Investors Cheer the News
When companies manage to ink a partnership or extend an existing one with a big-ticket behemoth, then it is bound to have a positive effect on the stock, and that is what happened with GDOT stock on Tuesday. In a new development that has surely come as a massive boost for Green Dot, its contract with retail giant Walmart Inc (NYSE:WMT) for the Walmart MoneyCard program has been extended.
The existing deal was going to expire in May of 2020, but after the extension, the fresh deal will kick in from January 1 next year. In addition to that, Walmart has also joined hands with Green Dot to create a fresh fintech accelerator named TailFin Labs, and the retail giant is going to hold a majority stake in the venture.
GDOT stock is up over 20% at $31.02.
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TailFin Labs is going to work on products and services that are going to be beneficial to the retail shopping space. In addition to that, the venture is also going to work on products meant for consumer financial services. It is a growing space, and it is no surprise that a company like Walmart is getting into it in a big way.
The Chief Executive Officer of Green Dot, Steve Streit, spoke about the new venture as well as the MoneyCard contract extension. He said, “Green Dot is extremely proud and honored to both extend our MoneyCard partnership for many years and to additionally enter into an entirely new equity partnership with Walmart in the creation of a fintech accelerator.”
Green Dot’s association with Walmart goes back to 2006 when it partnered with the retail giant to create the MoneyCard. The extension of the partnership is an indictment of the sort of work that the company has done.
Despite today’s big jump, GDOT stock is still down about 65% year to date.
Featured image: DepositPhotos © spaxiax
