GoBank to Go National by July 4 with Retail, Entertainment Promotional Push (May 16, 2013)
May 16, 2013
Green Dot Corp.’s GoBank mobile banking concept has proved successful with its first batch of users during a beta test launched in January and the company plans to roll out nationally by July 4, with a marketing push targeting younger consumers, including promotions at Rite Aid and Kmart, the company said this week. “Several thousand” consumers came aboard during the pilot, a Green Dot spokesperson tells Paybefore, and the company is very pleased with results.
GoBank, which went to market with twist on the monthly fee—it’s optional—will continue that deal indefinitely. GoBank has no overdraft fees or minimum-balance requirements and includes free ATM access through MoneyPass; there is a $2.50 fee for out-of-network ATM withdrawals.
GoBank plans to advertise its broad launch online and through in-store promotions, eventually expanding to other retailers, the company said. Customers may receive an offer for a free customizable card (a value of $9) at Rite Aid, Green Dot said. But the card is available only online, where consumers may download the app for iOS and Google devices. Third parties, including Tango Card, WePay and Rewardable also plan to help distribute the GoBank app this summer, Green Dot said. GoBank also will be featured on the upcoming season of cable TV’s “Project Runway,” demonstrating use of its debit cards, budgeting tools and P2P money transfers, according to the company.
Analysts note that GoBank faces certain challenges in generating revenue with its optional monthly fee strategy. But GoBank may be compelling to unbanked, younger consumers, notes David Schropfer, head of mobile commerce at Luciano Group, tells Paybefore. “The main competition that GoBank presents to banks is in the area of new customer acquisition,” he says.