Green Dot extends prepaid card deal with Wal-Mart Stores, shares rally in premarket trading

MarketsAssociated Press

Green Dot Corp. will continue serving as program manager for Wal-Mart Stores Inc.'s suite of prepaid and reloadable debit card products under a new long-term deal.

The announcement pushed shares higher in premarket trading Tuesday. The stock rose $4.21, or 27.5 percent, to $19.52.

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The initial term of the new agreement is for five years, with an effective start date of May 1. It replaces the current deal, which would have expired at year-end.

Also late Monday, the company said its board of directors approved a $150 million stock buyback program.

Pasadena, California-based Green Dot is a bank holding company offering personal banking through prepaid cards and mobile checking. Last year it worked with Wal-Mart on the retailer's GoBank checking account service. It also bought tax refund company Santa Barbara Tax Products Group last year in a move to expand its services.