The Prepaid Press - July 15, 2008 - (Page 25) PAYMENTS July 15 · 2008 - 25 Payments in Brief TIO Networks Corp. announced that it has surpassed its 10,000th location activation milestone. The automated bill payment and financial services network company reported that its 6,000th OEM Express location has begun processing payments. The release said that TIO has tripled the size of its bill payment network to 10,000 locations over the past 6 months. The company said the growth was achieved using its new transactional API (application programming interface). The API integrates large networks into the TIO network to market the Company’s portfolio of products on a host of third party devices including kiosks, PCs and point of sale systems. TIO Networks - www.tionetworks.com NovoPayment Issues Spending Cards Forecast Latin America’s Unbanked Could Number 300 Million by 2015 MIAMI, FL (June 10, 2008) NovoPayment estimates that the potential market for prepaid spending cards could be more than 300 million unbanked Latin Americans. The prepaid service provider said that the purchasing power of the unbanked could be more than US$ 200 billion per year by 2015. The estimate was offered by Anabel Perez, NovoPayment founder and CEO, at the 3rd Annual Underbanked Financial Services Forum in Miami. The forecast is for general purpose spending cards – the classification given to branded payment cards similar in function to debit cards, but that require no underlying banking account. NovoPayment said that this could provide access to POS, ATM, online transactions and mobile payments to a public that today relies almost exclusively on cash. “Our study revealed a significant market with the income, access to infrastructure and consumption behavior to be viable prepaid general purpose card users,” said Perez. “Approximately 57% of the population has the need, the capacity, the means, and we believe the necessary economic and social incentives to warrant modern payment tools. Prepaid general purpose cards have proved to be well suited for providing these services in a sustainable way.” The forecast covered 15 countries – Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Guatemala, Ecuador, El Salvador, Honduras, Nicaragua, Panama, Peru, Mexico and Venezuela. It is based on the measurement of factors such as size of labor force, poverty rates, wages, banking and mobile penetration, as well other metrics based on the company’s own experience in the field. The forecast is part of a larger study quantifying opportunities in Latin America for prepaid spending cards including the areas of wireless services, electricity, food vouchers and other key categories. NovoPayment issues cards under the MasterCard, Maestro, Visa and Visa Electron acceptance brands. Source: NovoPayment, Inc. (www.novopayment.com) Selling Source, LLC, a provider of technology and marketing solutions to the specialty finance sector, has acquired LeadRev, Inc., a lead generation and distribution firm in the micro-loan, auto finance and list management sectors. LeadRev is the parent company of 19 Communications and iDesktopMedia, and provides online leads and customer acquisition services to lenders, credit card issuers, automobile dealerships and insurance agencies. It has a particular focus on underserved and hard-to-reach customers in the specialty finance marketplace. Following the LeadRev acquisition, Selling Source will provide its specialized technology and services to customers in the following sectors: online micro-loans; online automobile sales and finance; credit cards and prepaid debit cards; insurance; and other related product categories. Selling Source – www.sellingsource.com LeadRev – www.leadrev.com edo Interactive, a technology provider in the payments industry, introduced the Facecard Prepaid MasterCard issued by MetaBank. Facecard will deliver an incentivized payment option to 82 million young adults, commonly known as “millennials.” Facecard is accepted wherever Debit MasterCard is accepted and is combined with advertiser-issued Prewards and edoCash. It creates a medium of exchange that simplifies and streamlines spending and gifting among millennials. Facecard is a single payment solution for purchasing, gifting and payroll services that is accessible through the online sites young adults visit most. It is a universal gift card that replaces multiple closed loop gift cards and serves as a one-stop personalized gift registry, gift exchange and peer-to-peer payment system. edo Interactive – www.edointeractive.com Prepaid General Purpose Spending Card Forecast 2015 Country Argentina Brazil Chile Colombia Ecuador Mexico Peru Venezuela Central America & Dominican Republic Total Potential Cards 29,422,215 109,896,959 12,470,594 33,233,125 8,573,106 64,014,451 19,854,333 22,707,748 23,877,945 324,050,475 Purchasing Potential in US$ $22,150,530,809 $69,528,796,689 $10,248,152,438 $15,754,125,141 $4,513,654,959 $54,340,532,445 $9,707,071,535 $15,431,902,107 $12,891,432,175 $214,566,198,298 Source: NovoPayment Discover Financial Services reported net income for the second quarter of 2008 was $234 million, or $.48 per share, as compared to $209 million, or $.44 per share, in the second quarter of 2007. Reported results included income from continuing operations of $202 million, or $.42 per share, and $32 million from discontinued operations related to the company’s International Card segment. Discover Financial Services www.discoverfinancial.com Advance Services, Inc., a staffing company headquartered in Norfolk, Nebraska with over 25 offices throughout the Midwest, has signed an agreement with nFinanSe to provide pay cards to Advance Services’ associates nationwide. Associates will now have the option of having their payroll electronically deposited on to an nFinanSe Pay Card. According to nFinanSe, with the nFinanSe Discover Network Pay Card, Advance Services will reduce administrative costs currently incurred by issuing and distributing paper paychecks throughout their regional offices. By doing so, they say employee productivity increases as the physical distribution and cashing of paychecks is no longer necessary. According to industry studies, it costs between $1 - $2 to process, print and deliver a paycheck and about $9 to replace a paycheck. nFinanSe – www.nfinanse.com; Advance Services - www.advanceservices.com GiftClixx LLC is the newest third party gift card distribution company, created by SmartClixx, LLC founder and CEO, Gary Dinkin and his wife, Linda. For over seven years, SmartClixx has been a software provider in the self-hosted stored value card arena. Having interfaced to both Blackhawk and InComm third party distribution providers through its proprietary SmartClixx SxDistribution module, Dinkin created a new market opportunity to address third party challenges, with the formation of GiftClixx. GiftClixx services include peer to peer transaction processing, settlement and reconciliation, web reporting, and inventory management. GiftClixx is POS and processor independent and can work with any large retailer or bank that processes transactions through a centralized payment switch or has internet connectivity and can support realtime, batch, or web activations. GiftClixx – www.giftclixx.com CAESARS PALACE, LAS VEGAS · AUGUST 19 – 21, 2008 THE PREPAID PRESS EXPO 2008 Toga, Toga, Toga! If you are attending The Prepaid Press Expo, August 19-21, at Caesars Palace, Las Vegas, here’s an event you won’t want to miss! EAT, DRINK, NETWORK WITH THE BEST OF PREPAID U.S. Treasury Introduces Direct Express Debit Card Social Security Payments for Four Million Americans WASHINGTON, D.C. (June 10, 2008) The U.S. Department of the Treasury’s Financial Management Service (FMS) announced that a prepaid debit card for Social Security payments and other federal benefits is now available. The Direct Express Debit MasterCard card, designed as a safe, convenient alternative to paper checks that people without bank accounts may choose, is currently being introduced in 10 states, and will be rolled out nationwide this summer. “People without bank accounts now have a user-friendly, practical alternative to paper checks for their monthly federal benefit payments,” said FMS Commissioner Judith Tillman. “We know that many check recipients are eager for a card-based option for their federal benefits, and we are confident the Direct Express card will provide many Americans an important entry point to the financial mainstream.” The Direct Express card provides another option to choose from for federal beneficiaries who do not have a bank account, but are looking for a no-cost or low-cost alternative to using check cashing facilities and carrying large amounts of cash. Unlike other prepaid debit cards, the Direct Express card offers cardholders free access to their money. There is no sign-up fee, and no bank account or credit check is required to enroll. Cardholders can make purchases, pay bills and get cash at thousands of ATMs and retail locations. Treasury has engaged a financial agent, Dallas-based Comerica Bank, to issue this nationally available card exclusively for payment of federal benefits. People currently receiving Social Security or Supplemental Security Income (SSI) checks in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas have received information about the card. People may sign up for the card by calling toll-free 1-877-212-9991 or visiting www.USDirectExpress.com. Source: U.S Treasury Department (www.fms.treas.gov) Toga Party at the Garden of the Gods Pool (Caesars Palace) Wednesday, August 20, 2008, 8:00pm –10:00pm THE TOGA PARTY PASS GIVES YOU ACCESS TO: Exhibit hall, Floor demos and Wednesday night’s Toga Party. Only $99! Only Exhibitors, Speakers, Conference and Toga Party Pass holders have access to the event. Exhibit Hall Only badges cannot attend. Upgrade your badge today to join the hottest party in prepaid. SPONSOR http://www.tionetworks.com http://www.novopayment.com http://www.edointeractive.com http://www.sellingsource.com http://www.leadrev.com http://www.discoverfinancial.com http://www.nfinanse.com http://www.advanceservices.com http://www.giftclixx.com http://www.USDirectExpress.com http://www.USDirectExpress.com http://WWW.PREPAIDPRESSEXPO.COM http://www.fms.treas.gov
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