Varo Bank taps Green Dot to launch Kroger cash deposit service

Building on a long-standing technology partnership, Varo Bank is using Green Dot's Arc platform again to this time roll out a fee-free cash deposit service across 2,000+ Kroger Family locations.

Varo Bank has launched a new service that allows customers in the US to deposit cash at Kroger Family checkouts, working in partnership with Smith Ventures-owned technology company Green Dot.

Gavin Michael, who has led Varo Bank as CEO since April last year, states that the move will let the challenger's over seven million deposit account holders "take care of their banking right in the grocery line".

Varo Bank has selected the Arc embedded finance platform and money processing network provided by Green Dot to power the service. This includes a barcode API integration with the Varo Bank app.

A four-week pilot programme is set to end on 18 August. Users will be able to deposit cash for free at more than 2,000 participating store locations nationwide.

This is not a new venture for Varo Bank. The digital challenger previously worked with Green Dot back in late 2024, and used the same technology to enable cash deposits at participating CVS Pharmacy locations.

Varo Bank recorded $211.4 million in net deposits at the close of 2025, alongside a net full-year loss of $91.7 million. Warburg Pincus and Coliseum Capital Management went on to co-lead a $123.9 million Series G round in February.

More recent developments saw Varo Bank hire Sean Kelley as CFO in July. Kelley ended a 21-year career at JP Morgan to join Varo Bank. He served the Wall Street firm as CFO and COO of Chase product and technology.