Russell Simmons Sells RushCard to Green Dot for $147 Mil @UncleRUSH

January 31, 2017 9:35 am

Green Dot said today it will buy UniRush, the parent company of RushCard as well as the Rapid! payroll debit card. Simmons started RushCard in 2003 as one of the first prepaid cards to focus on minority customers and charge lower-than-average fees. Prepaid debit cards are largely used by the “unbanked,” or those who do not have a checking or savings account and largely rely on cash to pay their bills every month. RushCard is perhaps best known for a software upgrade that went haywire in 2015, cutting off more than 400,000 customers from their funds for days and even weeks. People told of being unable to purchase necessities for their children, whilst customer service lines were tied up for weeks. Simmons, CEO of Rush Communications, co-founder of the iconic Def Jam recordings, apologized and took personal responsibility, later used some of his personal fortune to cover customers’ expenses. “This whole situation has been devastating for them, and we want to make sure they are made whole,” Simmons told the press in 2015.

Russell Simmons Sells RushCard to Green Dot for $147 Mil @UncleRUSH

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This post was written by Lukaz & Papz