NetSpend Corporation, the nation s leading marketer and processor of prepaid debit cards, announced it closed a recapitalization offering with Oak Investment Partners. Terms were not disclosed.
There is enormous opportunity in the prepaid debit card marketplace. said Ann Lamont, General Partner at Oak Investment Partners. There are over 50 million Americans who are un-banked or under-banked, that generate an estimated $170 billion in annual aggregate income. We believe in NetSpend s vision of providing tailored products and services to this underserved segment of the financial marketplace. NetSpend s strong product offering, experienced leadership team, and sound customer relationships in the grocery and check cashing industries have earned them the dominant position in this growing market segment.
Founded in 1999, NetSpend is a proven leader for prepaid debit processing platforms, offering an end-to-end approach that is unique in the prepaid payments industry. Hitting new volume records each month, NetSpend processes hundreds of millions of dollars in transactions volumes, and has hundreds of thousands of cardholders nationwide.
Our relationship with Oak Investment Partners will allow us to accelerate our expansion strategy, said Roy Sosa, President and Co-Founder of NetSpend. We are pleased with our current leadership position in the industry, and look forward to maintaining it as we continue to deliver rapid growth through the introduction of new product offerings and stronger customer relationships.
About NetSpend Corporation
Austin, Texas-based NetSpend Corporation is a proven leader for prepaid debit processing platforms, offering an end-to-end approach that is unique in the prepaid payments industry. From customer acquisition and communication, retention, distributor integration and training, card fulfillment, portfolio and risk management, regulatory compliance, and world-class customer service, NetSpend offers a complete, end-to-end, vertically integrated product offering that powers the infrastructure for prepaid payment applications. NetSpend s partnerships include agency agreements with the leading companies serving the un-banked and under-banked markets, as well as strategic relationships with card issuers, EFT and payment card associations. For more information, go to
About Oak Investment Partners
With over 25 years of investment experience, Oak Investment Partners is a growth-oriented private equity firm focused on global information technology and services with a total of $4.2billion in committed capital. Oak has intensified its effort in the financial services technology industry, and NetSpend represents a significant commitment to this vertical. In general, Oak s investment strategy focuses on growth opportunities in enterprise application and infrastructure software, communications equipment and services, data storage, outsourced services, financial services technology, healthcare services and retail. For more information, go to .