Monday, February 6, 2017
Russell Simmons Closes $167 Million Deal For His RushCard Debit Card Business
Green Dot and RushCard are two of the oldest prepaid debit cards in the marketplace. Russell Simmons’ RushCard increased popularity for prepaid cards while Green Dot pioneered the reloadable prepaid card and is the largest provider in the U.S., according to Forbes Magazine.
The two companies are now joining forces, merging Green Dot’s 4.5 million card holders with RushCard’s more than 750,000. The two moguls behind the deal are Russell Simmons, RushCard Founder, and Green Dot Corporation President Steven Streit.
From competitors to partners
The $167 million deal will retain both entrepreneurs and enable them to create a new company that will be able to offer even more services for customers who are considered "under banked and un-banked." These services will include the creation of the nation’s largest mobile, online and direct mail “direct-to-consumer” providers of bank accounts, debit cards and other financial services.
Both CEOs have been competitors for year, but they have also admired each other. They have similar goals help low-income families by both serving and educating them on financial needs. As Streit stated, “If I had my way, young people, especially from low-income families, would always talk about money and learn how to manage money."
Russell Simmons is not only an entrepreneur as the CEO of Rush Communications, but he is also known as the co-founder of the hip-hop music label Def Jam Recordings, and he has created clothing fashion lines like Phat Farm, Argyleculture, and Tantris.
Streit is also an entrepreneur who has mentored children in foster care in Los Angeles and has been a benefactor and supporter of the Los Angeles Police Department’s Hollenbeck Police Athletic League. What they share is a philanthropic spirit and a desire to empower communities.
Together, these two promise to not only revolutionize the banking industry but also increase customer services to marginalized communities across the country.
Read more details about RushCard, visit www.rushcard.com