Green Dot In Dispute with Uber, Loses Other BaaS Customers
Fintech’s customers are leaving its banking-as-a-service (Baas) platform.
August 8, 2022
Apple, Uber, Intuit and other firms use Green Dot’s (GDOT) banking-as-a-service (BaaS) platform to power their banking and money movement applications. With BaaS the company’s growth driver, investors weren’t pleased to ses BaaS revenue down 26.3% from the year ago quarter.
But what sent shares down approximately 15% after Green Dot’s latest earnings announcement was a warning from the company about the future of BaaS. Not only did the company reveal several BaaS partners would not renew their contracts, Green Dot also acknowledged trouble with one of its premier BaaS customers:
“...and we are also in the midst of a dispute with Uber over their obligations under our agreements with them.”
In the latest quarter, 29% of Green Dot’s operating revenue was derived from a single BaaS partner.
The recent loss of BaaS customers, according to Green Dot, will have only a “modest impact” on the second half of 2022’s financial performance.
Related: SYF, V, AXP, MA, PYPL, SQ
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