The Prepaid Press - December 15, 2007 - (Page 25)

PAYMENTS December 15 · 2007 - 25 7-Eleven Pushes Video Games Teens, ‘Tweens Targeted for Online Sales DALLAS, TX (November 29, 2007) 7-Eleven is promoting a new videogame initiative that is less about hardware and software than it is about going on a virtual shopping spree. 7-Eleven said that one of biggest global gaming phenomenons is the “Massively Multiplayer Online Game” (MMOG), a computer game that is capable of supporting hundreds or thousands of players simultaneously. The games are played on the Internet and feature at least one virtual world. MMOGs can enable players to cooperate and compete with each other, as well as interact with people around the world. While many of these games are free to play, gamers can spend money to create the coolest avatar, a graphic or visual online identity. 7-Eleven says its 24-hour operation makes it more convenient for the millions of MMOG fans to personalize their play with certain online games by offering the Nexon Game Card at its U.S. stores. An agreement with Nexon America Inc., the U.S. division of Asian online games company, Nexon Group, has made 7-Eleven the ﬁrst convenience retailer in the United States to sell these cards. Gamers can use the prepaid cards to redeem virtual in-game items and accessories within the MapleStory, Audition and upcoming KartRider games produced by Nexon. The prepaid game cards are available in 7-Eleven stores are sold in $10 and $25 denominations. “We have a great assortment of prepaid cards and now we have one especially for ‘tweens and teens who are the biggest fans of these online games,” said Brad Haga, 7-Eleven senior product director for business development and services. “They’re perfect for young people on a budget and should appeal to the Slurpee-beverage crowd.” 7-Eleven and Nexon worked with InComm, a technology ﬁrm that develops, markets and distributes stored-value gift and prepaid products, to add the Nexon gift cards to 7-Eleven’s extensive services category. An animated version of a 7-Eleven store and an employee will appear in the popular MapleStory MMOG. This type of integration brings relevant content to consumers and provides 7-Eleven with a new way to use virtual worlds to expand its marketing. “Offering these exclusive game cards is an important ﬁrst for a convenience chain and massively multiplayer online (MMO) publisher,” said John H. Chi, president and CEO of Nexon America Inc. “By partnering with 7-Eleven, we’re able to reach a much broader audience than ever before. Many of Nexon’s customers are teenagers without access to credit cards. Now they will have a more convenient option to getting the cards.” Source: 7-Eleven, Inc. (www.7-Eleven.com) Prepaid Card Dispensing from ATMs ATM Processor/ISO Offers Prepaid Dispensing in Time for Holidays MESA, AZ (November 28, 2007) ANI Advanced Network,will enable its clients to dispense gift cards using technology from Better ATM Services. ATMs can dispense Better ATM’s speciﬁed media cards using existing equipment with no add-on devices. ANI CEO Bob Plunkett said he sees numerous beneﬁts to this mode of distribution, expanding the ATM delivery channel beyond traditional cash dispensing. He said one beneﬁt is the ability to add feature and functionality to the existing investment. “Our clients are going to proﬁt from the opportunity it creates for additional income for the ATM owner, which is paramount in these times when ﬁnancial institutions are looking for ways to grow proﬁtability, expand existing client relations, and grow their client base,” said Plunkett. Todd Nuttall, Better ATM Services’ CEO, and a former executive at American Express, said that ANI offered a unique opportunity by combining the ATM and prepaid industries industries. Better ATM Services’ said its technology enables a new way to distribute prepaid gift cards, enabling the purchase of a variety of cards at ATMs, including sporting and other event tickets, transit and amusement park passes, and associated branded incentives. Plunkett said the gift giving throughout the year, and purchases of all kinds of prepaid media, the opportunity is signiﬁcant. He also sees an opportunity for expansion based on consumer choice. Plunkett said having these cards more readily available for dispensing at ATMs will be important to consumers. The Tower Group estimates that approximately $80 billion was spent on such cards in 2006, making gift cards make up the largest individual segment of prepaid cards. Based on Mercator Advisory Group research, approximately 600 million in-store cards have been sold. Source: Better ATM Services (www.betteratm.com) ANI (www.aniservices.com) Capital One and NetSpend Merger Off New Agreement Extends Existing Strategic Partnership MCLEAN, VA (November 19, 2007) Capital One Financial Corporation and NetSpend Holdings, Inc. have mutually agreed to the termination of their previously announced acquisition agreement and have agreed instead to expand their existing strategic relationship. As part of the expanded strategic relationship, Capital One intends to acquire a minority interest in NetSpend, a retail marketer of prepaid debit cards, along with an option to purchase additional shares of the company. In addition, the parties expect that a Capital One representative will join the NetSpend Board of Directors. Together, Capital One and NetSpend said they will jointly pursue the distribution of prepaid card products through a variety of mainstream retail channels. “We are excited about expanding our efforts with NetSpend into the mainstream U.S. retail marketplace,” said Kent Ivanoff, Capital One’s EVP, U.S. Card. “This partnership further strengthens our ability to offer flexible, safe and reliable payment alternatives to millions of consumers. We are conﬁdent that this alliance will bring tremendous value to both companies and that it will continue to drive our efforts in the prepaid marketplace to the next level.” “Our partnership with Capital One provides us with a tremendous opportunity to further extend our visibility in the growing prepaid market,” said Rick Savard, NetSpend’s CEO. “We believe that Capital One’s investment in NetSpend and their participation on our Board will further drive alignment of our long-term objectives across the prepaid market. By leveraging each company’s strengths, we can continue to deliver innovative products, drive sales and help build even greater loyalty for our merchant partners.” Capital One’s acquisition of an equity position in NetSpend is not expected to have a material effect on Capital One’s earnings per share in 2008. Source: Capital One (www.capitalone.com) NetSpend (www.netspend.com) Credit Card Design Competition Begins Public Invited to Enter Photos or Designs AUSTIN, TX (November 13, 2007) CreditCards. com has launched a design competition for those seeking self-expression through an unusual and overlooked medium – the credit card. The public is invited to enter their favorite photographs or designs for consideration in this competition at the contest website, http:// design.creditcards.com, . “From clothing to cell phones, consumer codesign and mass customization are redeﬁning commodity products as avenues for self expression,” said Jody Farmer, Vice President of Marketing for CreditCards.com. “We think debit and credit cards are in the next wave.” The top design will be selected by a panel of design experts and awarded the top prize of a $2,500 prepaid debit card. Two runner-up designs will also be selected and will receive $500 prepaid gift cards. Visitors can also vote for their favorite entry, and the entry receiving the most votes will be awarded $1,000 “Most Popular” award. The competition platform is powered by Serverside Group, a technology provider to the payment card industry. Serverside’s software allows users to upload, enlarge, rotate, move and ﬂip their chosen photos inside a card template, allowing them to view how their ﬁnished card design will actually appear. While CreditCards.com doesn’t directly issue any cards, at the website, consumers will ﬁnd a number of issuers that can fulﬁll their design. Source: CreditCards.com (www.creditcards.com) Serverside Group (www.serversidegroup.com) NRF Sys Gift Cards Gaining Popularity Consumers to Spend $26.3 Billion on Gift Cards This Year WASHINGTON, D.C. (November 13, 2007) As gift cards become increasingly convenient, more personalized and more sought after, retailers can expect to see an increase in gift card sales this holiday season, according to the National Retail Federation (NRF). The ﬁfth annual NRF Gift Card Survey, conducted by BIGresearch, found that gift card sales will total $26.3 billion this holiday season, compared to $24.8 billion in 2006. Additionally, the average consumer will spend more on gift cards than they did last year ($122.59 vs. $116.51 in 2006). “It is no secret why gift cards are the most popular item on consumers’ shopping lists,” said NRF President and CEO Tracy Mullin. “Many consumers pulled back on spending for themselves this year and are hoping to receive a gift card so they can purchase something they may have had their eye on for months.” According to a recent NRF survey, gift cards will be the one of the most popular gifts this holiday season as 56.6 percent of consumers plan to buy one compared to other top selling gift items like clothing, toys and books. And with popularity rising among consumers of all ages, 87.7 percent of shoppers said they will purchase two or more gift cards this holiday season. “As consumers become more strapped for time, they are constantly looking for ways to make holiday shopping easier and less stressful,” said Phil Rist, Vice President of Strategy for BIGresearch. “Gift cards allow for a faster and more convenient way to buy gifts for family and friends.” The NRF 2007 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. http://www.7-Eleven.com http://www.betteratm.com http://www.aniservices.com http://CreditCards.com http://CreditCards.com http://CreditCards.com http://www.creditcards.com http://www.serversidegroup.com http://www.capitalone.com http://www.netspend.com http://www.nrf.com http://www.i2cinc.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - December 15, 2007

The Prepaid Press - December 15, 2007 GENERAL PREPAID 2007: Prepaid in Review New Prepaid Association? Contents A Funny Thing Happened on the Way to the Forum Regulatory Rundown: FCC Enforcement, SEC Cracks Down, VoIP Hacking, & Wireless Regulation The Legal Line WIRELESS Prepaid Wireless Roundup kajeet to Offer Horoscopes, Jokes and Trivia Redknee Extends Converged Billing Solution AT&T GoPhone Offers Roaming Option in Mexico Total Call Mobile Introduces Holiday Bonus Wireless in Brief INTERNATIONAL Spot Rates Keycorp to Distribute Hypercom in Canada International in Brief Mobile Communications in Latin America Gets a Leg Up TELECOM & TECHNOLOGY T&T in Brief Phone House Launches New Card Facebook Goes Mobile CVT and Total Call Settle IDT Lawsuit Wireline Capex Grows 7% in Third Quarter PAYMENTS Transcard Selected for Discover Payroll Cards Vesdia and MXT Card Services Form Alliance The Giving Tree Card Gives Back MasterCard Launches Prepaid Travel Card Payments in Brief 7-Eleven Pushes Video Games Capital One and NetSpend Merger Off i2c Launches New Release of Campaign Manager Prepaid Card Dispensing from ATMs Credit Card Design Competition Begins NRF Says Gift Cards Gaining Popularity EXTRAS Classifieds Contact Us Our Advertisers

The Prepaid Press - December 15, 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.