The Prepaid Press - January 2009 - (Page 21)

PAYMENTS & PROCESSING Dec. 2008 / Jan. 2009 - 21 BioPay Expands Offering for Underbanked Includes Walk-In Bill Payment and Prepaid Debit HERNDON, VA (December 4, 2008) Biometric check cashing company, BioPay Paycheck Secure, has established partnerships that provide retailers with new, valuable product offerings, including walk-in bill payment and prepaid debit, to better serve underbanked consumers. BioPay says this market constitutes more than 106 million individuals, who prefer to transact at alternate financial service centers, like grocery and convenience stores, rather than traditional banks. The prepaid card program allows retailers to provide their check cashing customers with an alternative to cash. Now retailers can cash customer checks without stocking their stores with large sums of cash, instead loading the proceeds of a check cashing transaction directly onto a prepaid card. The consumer may then use the value stored on the card at ATMs, online or at millions of retail and restaurant establishments. The card offers the consumer a safe means of building “savings”; providing protection should the card be lost or stolen and gives the consumer the convenience and prestige associated with mainstream card usage. BioPay says that both walk-in bill payment and prepaid card markets are experiencing 30% plus growth rate, which offers grocery stores, convenience stores and other retailers the opportunity to increase their revenue, drive in-store traffic and increase their overall merchandise sales. Using Paycheck Secure, retailers may now provide this service to the estimated 1 in 5 consumers who prefer to pay their bills in person. “Providing our merchant customers with new tools to grow their business and meet the needs of the increasing alternate financial services market is our goal,” said Jon Dorsey, CEO, BioPay Paycheck Secure. “The Paycheck Secure service positively enhances the transaction experience for underbanked consumers; and provides merchants with critical data to manage their businesses.” Source: BioPay Paycheck Secure (www.paychecksecure.com) Cellular South Offers Mobile Banking for Regions Bank Wireless Carrier Brings Customers’ Banks to Their Phones RIDGELAND, MS (November 24, 2008) Cellular South will provide mobile banking services to customers who bank with Regions Bank, one of the nation’s largest providers of consumer and commercial banking services. Cellular South says the new mobile service will bring the convenience, flexibility and security of online banking to Regions’ customers’ wireless phones. Cellular South, a privately owned wireless carrier, now offers the free wireless mobile banking application to customers who bank with Regions and eight other Mid-South financial institutions, including BancorpSouth, SunTrust, USAA, Wachovia, Trust One, Coastal Bank and Trust, Vanguard and Bank of Pensacola in the Mid-South region. The mobile banking application is available on both cell phones and BlackBerry devices, including the Curve, the Pearl and the World Edition. The service allows individuals who are customers of both Cellular South and participating banks to view account balances and history, transfer funds and pay bills from their mobile handsets through a secure, PIN-protected gateway. “More and more of our wireless customers are demanding mobile banking services, and we are pleased that we can now offer the application to our customers who bank with Regions,” said Cellular South President Hu Meena. “Across the industry, people are realizing that mobile banking gives them the flexibility to pay bills, transfer funds and make financial decisions, anywhere, anytime.” A recent Harris Interactive study revealed that consumer demand for mobile banking among wireless customers is continuing to grow, as 16 percent of U.S. adults say they already use the services, and another 35 percent report that they are open to checking bank account balances and transferring funds via their mobile phones, smart phones or PDAs. To use Cellular South’s mobile banking feature, customers must have an account with a participating bank, such as Regions, and must enable online access to their account, a free feature at most banks. Users who sign up for Cellular South’s mobile banking receive a secure initialization code and can access and monitor multiple bank accounts from the same application and PIN. “We’re pleased to work with wireless carriers like Cellular South to bring mobile banking to our customers,” said David Rupp, Regions senior executive vice president for consumer services. “Managing bank accounts from a wireless device fits the busy lifestyle that many of us share and it will make banking more convenient for Regions and Cellular South customers.” Source: Cellular South (www.cellularsouth.com/mobilebanking) IDT to Sell European Prepaid Payment Business Deal Worth Over $15M in Cash and Securities NEWARK, NJ (December 1, 2008) IDT Corporation (NYSE:IDT; IDT.C) will sell its European prepaid payment services business to NEOVIA Financial Plc (LSE:NEO) for $15.05 million. NEOVIA is an independent, global provider of online payments. Under the terms of the agreement, NEOVIA will acquire IDT Financial Services Holdings Limited and other assets, which together provide prepaid MasterCard products in the UK market under the “Prime Card” brand. The purchased assets include approximately $10 million in securities held pursuant to regulatory requirements. The proposed transaction is subject to regulatory approval of the Gibraltar Financial Services Commission and consent of MasterCard. Howard Jonas, Chairman of IDT Corporation, said that the acquisition will benefit consumers. “NEOVIA’s considerable resources and expertise will expand the range of financial services available to IDTFS customers while nicely complementing NEOVIA’s existing capabilities.” “This sale is part of our broader initiative to focus the company’s operations on our core businesses,” said Jim Courter, CEO of IDT Corporation. “We continue to sell and close down businesses that, however promising, do not meet our strategic objectives.” Source: IDT Corporation (www.idt.net) Javelin Research: Processor Important in Prepaid The Right Choice Breeds Greatest Success SAN FRANCISCO, CA (November 24, 2008) Javelin Strategy & Research, an independent provider of quantitative and qualitative research focused exclusively on financial services, has released results from a study of how a prepaid card issuer should assess and choose a processing partner in order to obtain the greatest success from their prepaid card programs. According to Javelin, the processor choice is often overlooked and undervalued by prepaid program managers. But growth in the complexity of prepaid products, as well as year-over-year transaction volume growth underscores the criticality of selecting the right processor to keep pace and optimize investments long-term. “Companies that want to enter or expand their prepaid card presence face important business decisions,” said Bruce Cundiff, Director of Payments Research and Consulting at Javelin. “Using a thorough methodology to choose the right processor is integral to achieving success and a reliable return on any prepaid card program.” Javelin delves into four key components of an effective prepaid processing program, including managing the card, serving the cardholder, executing the transaction and, getting the most from the platform. A detailed discussion of each component provides decision-making guidance to prepaid issuers chartered with managing a program. The study also takes on several of the common misconceptions about the processor selection criteria, dispelling myths and setting the record straight based on perspectives from practitioners and current market trends iPayStation Launches Network for Distributor PayZone to Utilize iPayStation’s Prepaid System GARDNER, MA (November 14, 2008) iPayStation has launched a private label network for Kansas based distributor PayZone North America, Inc., enabling the company to provide retail agents with a terminal or a web-based interface to conduct bill pay and prepaid transactions. “The private label, electronic distribution solution iPayStation provided is pretty much a turnkey solution for us,” reports Mel Quillen, PayZone’s President. “The Enterprise Resource Planning (ERP) system integrates the data and processes of our organization into one single system.” According to the company, the system was customized specifically for PayZone’s needs and requirements. “This business relationship is perfect for PayZone,” says iPayStation CEO Osvaldo Rodriguez, “as it allows PayZone to build relationships with the bill pay or pin providers they choose, then iPayStation develops the custom interconnects and necessary interface changes to the core system for PayZone. We took a role more liked to that of an Application Service Provider (ASP) than a prepaid distribution network provider.” In other iPayStation news, the company has appointed industry veteran Bruce Burke as Director of Marketing and Business Development for iPayStation North America. “The timing could not have been better,” states Osvaldo Rodriguez, President and CEO of iPayStation. “We are readying our launch of new services; Cross-Border Bill Payment, International Money Remittance and Uni-Mas Prepaid MasterCard, and we feel Mr. Burke is highly qualified to spread the word.” Source: iPayStation (www.ipaystation.com) PayZone (www.payzone.biz) fraud mitigation and also in terms of the scrutiny that issuers face to comply with moneylaundering and homeland security standards, risk and compliance management can’t be overlooked. • Plan for growth, anticipate evolution. As the market continues to mature, growth and change will follow. Prepaid issuers must look for a processor who has the foresight, scale and track record to help minimize growing pains. Cundiff continues, “The evolution of the prepaid card segment will be http://www.paychecksecure.com http://www.cellularsouth.com/mobilebanking http://www.idt.net http://www.ipaystation.com http://www.payzone.biz https://visa.webex.com/visa/onstage/g.php?t=a&d=662825557 https://visa.webex.com/visa/onstage/g.php?t=a&d=662825557 http://www.storedvalue.com http://www.javelinstrategy.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - January 2009

The Prepaid Press - January 2009 Economic Crisis Sharpens Focus on Stored Value Cards Industry Veterans Weigh In on 2009 Prepaid Opportunities Contents From the Publisher: Ready for Change? The Prepaid Press Thanks its Editorial Advisory Board Regulatory Rundown 2008 Milestones Prepaid Wireless Providers Capitalize on Economic Downturn Prepaid Telecom in Brief APCC Services Settles With Calling Card Providers Boost Mobile Offers All-in-One Prepaid Package SonarTel Prepaid Customers Can Use Accounts in More Countries BillSoft Selected by Integra Telecom Pingo Adds PC “SoftPhone” Calling kajeet, the Cell Phone Service for Kids, Wins Award Prepaid Wireless Roundup The State of Prepaid Technology: Wholesalers & White Label Services New Millennium Releases Wireless Survey Results 5 Minutes With Paul Amick, EVP & Co-Founder, PhoenixSoft Millions Could Cut Cell Phone Bills in Half New Virgin Poll Reveals Buying Habits The Legal Line BioPay Expands Offering for Underbanked IDT to Sell European Prepaid Payment Business iPayStation Launches Network for Distributor Stored Value Solutions Appoints New VP Cellular South Offers Mobile Banking for Regions Bank Javelin Research: Processor Important in Prepaid MiCash Announces New Prepaid Debit Card Monitise and eCommLink Partner Platamovil Selects PhoenixSoft’s Cirrus Softswitch Prepaid Market Forecasts to 2011 Payments & Processing in Brief Prepaid 101: Gift Cards SCA’s PrizeSuite Enables Promotions MT&L Offers Gift Card Removal and Destruction Heartland Payment Systems Acquires Chockstone Amex and Rymax Offer Gift Cards TransCard Announces Corporate Gift Card Website Gift Cards & Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - January 2009

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