As part of the agreement, the Bancorp Bank will issue the cards as part of both new and existing card programs for which NetSpend serves as a program manager and processor.
NetSpend provides reloadable prepaid debit cards, which have been designed as a payment alternative to cash and traditional banking products and targeted at the 60 million underbanked consumers in the US.
NetSpend and the Bancorp Bank have collaborated since October of 2010 to finalise the complete mutual due diligence, program assessment and technical integration planning. Following the definitive agreement, NetSpend is expected to issue general-purpose reloadable prepaid debit cards in collaboration with the Bancorp Bank in April 2011.
Currently, NetSpend is in talks with other issuing banks and has previously partnered with other three banks. By the second half of 2011, NetSpend foresees to transition more than 15 percent of its non-corporate employer-issued debit card volumes, either from existing or new cardholder accounts to one or more banks.
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