Introducing the middle man
Watch out, banks – more and more startups are trying to do what you do. There’s a growing trend of small businesses providing financial services you would otherwise get from a bank, and NetSpend is one of them.
NetSpend can be really handy for employers whose business is too small to have a payroll, who have employees without bank accounts, or who contract labor. The Austin-based company was founded in 1999 and has served 10 million customers.
What do they do?
NetSpend is essentially a prepaid debit card. To get one, you don’t have to apply or have a good credit score, because there is no credit check. In fact, there’s no activation fee or minimum balance either.
NetSpend is accepted anywhere you can use a Visa card.
Employers can direct deposit payments to a NetSpend card, and the company claims that NetSpend users receive direct deposits more quickly than if they used a bank. NetSpend also accepts government benefit checks, and you can even get your tax return sent to your NetSpend card.
Users can also transfer funds onto the card by taking a picture of their check with a smartphone, or by depositing cash at NetSpend’s 130,000 nationwide reload locations, many in the gas stations and grocery stores where you already shop. You can also send and receive funds directly with other NetSpend cardholders.
Perks and how they give back
Just as with a regular bank, you can manage your NetSpend card online or with your mobile device. You can check your balance and view a history of your transactions. Real-time text alerts let you know when your paycheck has arrived. With a Premier account, you also get $10 of overdraft protection. You can even open a NetSpend savings account with up to 5 percent annual percentage yield.
Best of all, NetSpend is a company who cares about making a positive impact on the community.
The company works with Mobile Loaves and Fishes, an organization that benefits homeless people, to help the homeless receive funds despite not having bank accounts.
With startups providing all of the necessary financial services, it makes you wonder why you’d bother opening a bank account.
