Green Dot, a US-based prepaid financial services company, has acquired certain processing and hardware assets of eCommLink (ECL) for $2.5m in cash.
Recently, Green Dot renewed an outsourcing agreement with TSYS for processing and network connectivity for an additional two-year term.
During the two-year term period, Green Dot expects to transition those services from TSYS to its in-house processing solution built on the assets acquired from ECL under the supervision of its chief information officer John MacIlwaine.
Green Dot CFO John Keatley said that approximately one-third of Green Dot’s total processing expenses consists of fees paid to payment processors like TSYS and to Synovus, one of their issuing bank partners.
"We expect that integrating our recent acquisitions of Bonneville Bancorp and the assets of ECL will enable us to implement our vertical integration strategy over the next two years as we build out our own in-house card issuing and processing capabilities," added Keatley.