Green Dot acquires mobile technology company Loopt

Green Dot, a leader in prepaid debit cards, has acquired Loopt to increase its presence in the mobile sector, a move that symbolizes just how strong the link between banking and mobile has become. Neither company has given an indication of exactly what the new partnership will focus on, but Green Dot says it is necessary to keep up-to-date in the mobile space given all the changes that are underway.

Loopt offers an entire portfolio of mobile patents, ranging from location-based messaging services to mobile marketing techniques that will bolster Green Dot's reputation as a viable alternative to traditional credit cards and bank accounts. The company believes it will be able to market to entire new customer segment, and will also be able to better retain its existing customers.

Green Dot currently caters almost exclusively to people who are unable to get their own bank account, but by pushing high-tech mobile initiatives, company CEO Steve Streit thinks he could appeal to customers who are eager to go mobile with their payments. "When Loopt's assets are layered into Green Dot's platform, we believe that a significant opportunity emerges for Green Dot to become a large-scale player in mobile technology solutions at the retail point of sale," Streit said in a statement.

[via Mobile Payments Today]