Varo Bank customers can now deposit cash without fees at over 2,000 Kroger Family grocery locations nationwide, following a new partnership with Green Dot and integration of the Arc platform
Varo Bank has introduced a new cash deposit service for its US customers, allowing them to add funds to their accounts at more than 2,000 Kroger Family grocery stores. This initiative, developed in partnership with Green Dot, leverages the Arc embedded finance platform to enable fee-free cash deposits directly at checkout counters. The service is designed to make banking more accessible for Varo Bank's over seven million deposit account holders, who can now manage cash transactions while shopping for groceries.
The rollout includes a barcode API integration within the Varo Bank app, streamlining the process for users. Customers generate a barcode in the app, which is then scanned at participating Kroger Family locations-including Kroger, Ralphs, Fred Meyer, and other affiliated brands-enabling immediate cash deposits to their Varo accounts. The service is currently in a four-week pilot phase, scheduled to conclude on 18 August, after which it is expected to become a permanent feature if successful.
Expanding Access to Cash Banking
This move builds on Varo Bank's previous collaboration with Green Dot, which in late 2024 enabled cash deposits at select CVS Pharmacy locations using similar technology. By extending the partnership to the Kroger Family network, Varo Bank aims to address the persistent challenge of cash access for digital banking customers, particularly those who rely on cash for everyday transactions or do not have easy access to traditional bank branches.
According to Varo Bank, the new service is entirely fee-free for users, a notable distinction in a market where cash deposit fees at retail locations can range from $3 to $5 per transaction at other banks or prepaid card providers. The integration with Green Dot's Arc platform also allows for real-time processing, meaning deposited funds are typically available in the customer's account within minutes.
Recent Developments and Financial Context
Varo Bank reported $211.4 million in net deposits at the end of 2025, reflecting steady growth in its customer base. However, the bank also posted a net loss of $91.7 million for the full year, highlighting the ongoing financial pressures faced by digital challengers in the US market. In February, Varo Bank secured $123.9 million in Series G funding, co-led by Warburg Pincus and Coliseum Capital Management, to support its expansion and technology investments. The bank further strengthened its executive team in July by appointing Sean Kelley as Chief Financial Officer, following his 21-year tenure at JP Morgan, where he served as CFO and COO of Chase product and technology.
For context, the US market has seen a wave of fintech partnerships aimed at improving access to banking services for underbanked populations. As highlighted in a recent analysis of major fintech deals and new banking ventures, the integration of embedded finance platforms is reshaping how consumers interact with both digital and traditional financial institutions.
How Embedded Cash Deposits Work
Embedded cash deposit services allow digital bank customers to add physical cash to their accounts through retail partners, bridging the gap between online banking and the cash economy. The process typically involves generating a unique barcode or code in the banking app, which is then scanned at the point of sale. The retailer collects the cash and transmits the transaction data to the bank's processing partner-in this case, Green Dot-who credits the customer's account. This model reduces the need for dedicated bank branches or ATMs, offering greater convenience for users who handle cash regularly.
While the service is currently limited to Kroger Family locations, Varo Bank's approach reflects a broader trend among digital banks to partner with established retail networks and payment processors. The goal is to provide customers with practical, low-cost options for managing cash, especially in regions where access to traditional banking infrastructure remains limited.
Embedded finance platforms like Arc are increasingly central to these efforts, enabling seamless integration between digital banks, retailers, and payment networks. As more banks and fintechs adopt similar models, the distinction between online and offline banking is likely to continue to blur, with practical benefits for consumers seeking flexibility in how they manage their money.
Embedded cash deposit services represent a significant shift in how digital banks address the needs of customers who still rely on cash. By partnering with large retail chains and leveraging payment processing platforms, banks can offer a wider range of deposit options without the overhead of physical branches. However, the success of these services depends on factors such as network coverage, transaction speed, and the elimination of fees. As digital banking continues to evolve, the ability to bridge the gap between cash and digital accounts will remain a key differentiator in the US and other markets where cash use persists.
