The sale of Netspend is expected to give extra cash for Global Payments to invest in core parts of its business
US-based payment technology company Global Payments is reportedly looking to offload its prepaid debit cards business Netspend unit for more than $2bn.
Global Payments and an investment bank are working on the potential sale, reported Reuters citing anonymous sources.
The payment technology company, which is valued at $53bn, started marketing the prepaid debit cards business to buyers since September, the sources told the news agency.
Through the sale of Netspend, the US payment technology firm will gain extra cash which in turn is planned to be invested in key parts of its business.
The company will also invest on some of its businesses that are believed to be important growth drivers for the future.
Global Payments gained ownership of the prepaid debit cards business following its last year’s acquisition of Total System Services (TSYS) for about $21.5bn.
TSYS had acquired Netspend in 2013 for about $1.4bn. Netspend is a prepaid card and payment solutions company based in Austin, Texas.
Netspend serves underbanked consumers in the US
Established in 1999, the company, through its products, caters to people without a traditional bank account or who prefer to opt for alternative financial services.
The company is said to serve millions of underbanked consumers through its general purpose reloadable (GPR) prepaid debit cards, PayCards, and related financial services.
Self-banked consumers can reload and find Netspend’s prepaid cards at the company’s network of around 130,000 reload points and over 120,000 distributing locations and employers in the US.
Netspend’s network includes convenience stores, grocers, check cashers, pharmacies, insurance providers, and tax preparers.
The company also has partnerships with Walmart, Western Union, PayPal, ACE Cash Express, 7 Eleven, Brinks Money, and others.