Transcript for 'Green Dot' Sees Red on Unlikely Alliance Between American Express, Walmart
I'm -- -- in New York. Financial markets closed towards this Monday April 21 that's a story stock -- -- -- take a look at green -- Maker -- prepaid visa and MasterCard debit cards. Well thanks to an unlikely alliance between American Express and Wal-Mart green dot. Looking little red today so -- outlook sweated off -- and -- and totally forgotten finance so Michael what exactly happened today that. While American Express announced that it serve product which is another prepaid debit card where you essentially. In a load cash onto. I debit card that you can use anywhere is going to be expanded. For sale across 4100 Wal-Mart stores they're also going to be able to re load those cards. At wal -- and basically they're kind of intensifying a partnership that they've already had. And this is a big threat to green dot green dot. Has made is an independent company that only really supplies these prepaid debit -- -- -- really hot stock after its IPO a few years ago this -- sixty dollar stock. Now it's cracked below twenty and it's because really the whole -- is being threatened because they collect pretty big tees off of these these debit cards. Let's say a look at the two today in fact is that you have it up that is the other performances spent the past two days -- yeah you can see a pretty dramatic what's that announcement was made out there he said missiles wants up to sixty my goodness wow. Yet few years ago it -- we exceeded sixteen it was actually considered to be a big play among those people they call the on -- -- under bank were essentially you know checking fees have gotten a little bit onerous and ATM fees and a lot of people just did not really have a banking relationship. But yet they wanted to debit card for use in various places you -- -- -- -- -- card you -- -- kind of you know be kind of more Smart about exactly how. You know you spend your money -- -- it that way you can look you can basically have direct deposit on its of those benefits these cards. But green -- collected a pretty big -- -- -- no in New York City a lot of people would buy these for their babysitters France for -- expenses as opposed handing them cash. But right now a lot of other players in there now including American Express. In fact this isn't quite large audience of consumers out there and me is there is wondering exactly who gets these prepaid debit card of the exiles that you mentioned there. According to American Express seventy million Americans. Might be making use of this I mean that is a consumer -- certainly to be reckoned with and to pay attention to which is like green -- -- -- hurt so much -- and it makes -- announcement or will then what is the major difference between green dot cards and the -- -- card. Yeah -- is gonna have lower fees and just I think that the marketing muscle and the other sort of name recognition of American Express. Is is just gonna be that much more powerful because green -- already kind of -- allow Wal-Mart stores -- -- perception here is that wal -- throwing its weight behind Amex a little more than. -- that in fact its interest -- because. Wal-Mart decided to become a big financial services power they're allowing money transfers cash money transfers now directly with Wal-Mart that's hurting western union money -- a lot of people out there. We don't do -- traditional banks Wal-Mart wants their business. You know that's a hornets and we should talk lesson about western it just about money transfers in general because they're more these companies are -- to intuit retailers primarily. Really try to look at that obviously you know the number one rule of retail ultimately your customers waiting there to give -- money. Essentially -- -- promising not to really nickel and dime customers with these little fees right and it's a whole new strikes. That's entirely written and thus can afford to do it -- how they don't have to necessarily meant to for those fees they get paid on the transactions. And they want a big piece this morning because of course traditionally Amex is skewed to the -- into the market -- people who are you know have lots of money. Big ticket purchases not really the folks. Down who you know kind of paycheck -- -- -- -- -- -- Yahoo! finance Mike thank you so much appreciate it you have been watching story stock stay with ABC news dot -- headlines. I'm down Cutler in new York and.
This transcript has been automatically generated and may not be 100% accurate.