June 16, 2010 / 6:36 AM / in 7 years

Wal-Mart invests in debit card seller Green Dot

2 Min Read

June 16 (Reuters) - Wal-Mart Stores Inc (WMT.N) has taken a minor stake in the prepaid debit card seller Green Dot Corp in a move that would give the U.S. retail giant indirect access to the U.S. financial space.

In a filing with the U.S. Securities and Exchange Commission this month, Green Dot said it had issued 2,208,552 shares of Class A common stock to Wal-Mart.

The stake would represent less than 1 percent of the combined voting power of outstanding Class A and Class B common stock after offering, Green Dot said.

In February, Green Dot had filed for an initial public offering of up to $150 million. [ID:nN26201233]

An attempt by Wal-Mart to open a U.S. bank was abandoned in 2007 after intense lobbying from the sector.

The Wal-Mart stake report was first published by the Financial Times on Wednesday.

Monrovia, California-based Green Dot sells prepaid debit cards and reloading services to U.S. consumers at roughly 50,000 retail stores including Wal-Mart, Walgreen Co WAG.N and 7-Eleven.

Wal-Mart began a push into Canada's financial space on Tuesday, launching a domestic bank and a rewards credit card, in what could be just the first foray by the U.S. retailer into an already-crowded Canadian banking sector. [ID:nN15271919] (Reporting by Sakthi Prasad in Bangalore; Editing by Michael Shields )

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