The Prepaid Press - January 2009 - (Page 7)

PREPAID BUSINESS Dec. 2008 / Jan. 2009 - 7 Industry Veterans Weigh In on 2009 Prepaid Opportunities Prepaid Debit Cards Top List; Prepaid Wireless and Mobile Commerce Also Highlighted in the most economical way possible. So we are working to put the tools in front of them that give them plenty of options and make it easy for them to buy a prepaid service. We have recently launched a program with Best Buy Mobile that features a Universal SIMCard. For customers with an unlocked GSM phone who want to move to a prepaid product, we can provide them with a simple, seamless solution that enables them to keep their existing phone number. We also have several prepaid plans that give them options to meet their needs. In the current environment where people are looking to budget and stretch their dollars, providing them with prepaid options is important. And it’s our responsibility to make the transition process easy. We are very optimistic about next year. I think the problems with the economy will only benefit us. When times get hard, people need to fix their budgets and they can only do that with a prepaid card – not postpaid service. At Simple2Call, our sales are going strong and we expect this to continue. Our 2008 sales were up 25 percent over 2007, and we look forward to continued growth in 2009. from page 1 gift cards might fall off because of discounted merchandise and retailer troubles, financial services gift cards are growing substantially – sales are up 28 percent. We are seeing a shift among consumers from a gift card focused on a specific retailer or restaurant, to a gift card that people can use anywhere. In addition to the gift factor, more people are moving toward reloadable debit cards to pay bills and make purchases – whether it is because they are unbanked, under banked or have lost credit due to the current economic situation. These cards have become more user friendly with less fees attached, which is contributing to the huge growth pattern. Prepaid wireless is another big opportunity. We see consumers turning to prepaid wireless because of the credit issues on the postpaid side. I think there will be a tremendous top up opportunity for retailers in the wireless space in 2009, as a result of lots of prepaid cell phones being sold over the holidays. Another fast growing segment is prepaid gaming cards, and we are continuing to see growth in digital music. Given the state of finances and the historical significance of what is happening not just here, but around the globe, we are still optimistic about conservative growth to the category as a whole in 2009. when it comes to prepaid debit cards and mobile banking, and our strategy is to support both of these trends. Paris Holt CEO, telSPACE & mCASH The two things that are hot for 2009 are mobile commerce and the move from traditional credit cards to prepaid debit cards. With the economy performing the way it is, it is difficult for many consumers to qualify for a credit card and our mCASH card sales are skyrocketing because of the credit freeze and due to an increased demand for customers to have a convenient and free way to transfer money. But the reason for the move toward prepaid debit isn’t just because people can’t get credit. For the first time, I’m seeing a shift in consumer behavior where even those who have the ability to get credit cards are focusing less on debt and more on spending only what they have – not what they think they are going to have. There is also a big trend toward mobile commerce. Every time I listen to the radio or turn on the TV, there seems to be an ad for mobile banking. The bottom line is that we need to give people the ability to use money remotely, move it remotely and not have to spend $10 any time they want to move money and the answer is allowing people to manage their money using their cellular phone. I see a big cultural shift taking place worldwide Ed Braswell CEO & Founder, Facecard Prepaid MasterCard I am encouraged by the market opportunity for prepaid open loop debit card products. I see a definite opportunity tied to the current economic situation and the short term credit and lending issues that credit card issuers will have for some time. And we are seeing compounded growth rates with products targeted to young adults. Our Facecard Prepaid MasterCard is focused on the millennial generation and I see huge opportunities for 2009 and beyond. There are currently 82 million millennials between 13 to 28 years of age, with discretionary spending in the range of $250 billion. This is a strong socially and technologically advanced group and their characteristics lean toward non-traditional solutions. As such, we have worked to create a non-traditional financial services solution that integrates the tools these young adults use on a daily basis. We have interfaced with social networks by offering peer to peer payment capabilities, and offer mobile phone connectivity for checking account balances or sending gift notifications. We have also developed Prerewards, which is an alternative to coupons. It enables retailers Kulwant Shahi Vice President, Simple2Call Thanks to the strict regulations that have cleaned up the phone card industry, I think 2009 offers great opportunities for prepaid phone cards. While the domestic phone card industry has decreased significantly, this doesn’t hold true for the international market. Immigrants need phone cards to make international calls. The key to success is evolving phone cards to keep up with the technology – such as adding pinless dialing and speed dialing to make it faster and more convenient for users to make a call. Lori Breitzke President, E&S Consulting LLC All indications are showing that more and more consumers are not qualifying for credit. And particularly with a lot of bills now being paid online, we see a tremendous opportunity for prepaid debit cards that make it easy for people to load up $100 and pay their phone bill or water bill online. In the last 30 to 60 days, I have received a lot of calls from small program managers interested in launching or selling prepaid debit cards – which really validates the trends I’m seeing. I see two market opportunities for prepaid debit cards in 2009. One is to the serve the unbanked population or niche demographics. The other one is with banks, which are looking at prepaid debit cards as a bridge product to offer people who are being declined for credit. They see prepaid debit cards as a solution for a couple of years until the market goes back up. “Become a LIQUID-TAX dealer and provide the same services as H&R BLOCK and JACKSON HEWITT Don’t miss the BIGGEST Tax season of Record! . . . . AND WE DO ALL THE WORK.” Big Commissions - make up to $100 per return We calculate and e-file the taxes, you print the check! Increase your profits without additional overhead Works well with flat rate providers “We are seeing a shift among consumers from a gift card focused on a specific retailer or restaurant, to a gift card that people can use anywhere.” – Frank Squilla, Senior VP of Sales, InComm to target members in our database with digital incentives based on members’ individual preferences. This group isn’t likely to look in the Sunday circular for coupons so we are working to create a direct relationship between retailers and our cardholders. I think there is a big emerging opportunity to tie digital incentives to prepaid products using innovative technologies. PACKAGE INCLUDES: Check Print Software Blank Check Stock Marketing Materials Training Bilingual Support $199 SOFTWARE FEE www.liquid-tax.com 1-888-541-4443 Pete Grubb VP Sales and Marketing, O2 Wireless We see some good opportunities for prepaid wireless because postpaid customers are under a lot of strain and want to get out of their contracts. They want to make phone calls and they need text messaging, but they need to access these services ALSO SEEKING MASTER AGENTS FLAT RATE PROVIDERS http://www.liquid-tax.com http://www.liquid-tax.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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