The Prepaid Press - February 2009 - (Page 11)

PREPAID TELECOM February 15 · 2009 - 11 mobile commerce applications and affinity programs. Many providers now offer games, ringtones, graphics and instant messaging services that can be deducted from the account balance. As amounts are remitted in U.S. dollars and converted to the currency of the native country, the amount can be channeled to pay for these services. PIN vs. real-time top-up: the ups and downs Not all international top-up uses a real-time, store-to-switch transaction to replenish accounts. Some international providers still utilize PINs to represent various increments of airtime or service units. This methodology is not considered to be real-time as the account is not topped-up at the point of sale. There are additional steps that need to be taken before the required authorization code is applied and the account is replenished. In many regions this is With the current worldwide trend of flattening borders and economies, carriers are looking outside their borders for ways to generate additional revenue. still considered top-up, but PIN distribution is still required using either physical cards or the preferred electronic vouchers. In countries where GSM and GPRS (general packet radio service) are the only network protocols available, distributors and retail agents utilize a wireless handset as the point-of-sale device. The phone’s number is considered an authorized terminal on the network and interacts with the system host to provide transactions for PIN distribution and sales. There are as many methods as there are carriers and distributors. Some have sophisticated interfaces and devices plugged into smart phones; others use simple SMS messaging for PIN requests and acknowledgement. As unsecure as this may sound, the reality is a PIN delivered via SMS is less likely to be fraudulent than a printed voucher or card in some countries. Fraud is rampant and printing reproductions of cards that contain bogus authorization codes is commonplace. Still some carriers prefer PIN-based products, which are incremented to standardized amounts. In countries where an average teenager cannot afford a voice plan, PINs are sold for services such as text, graphics and songs. Obviously this is not the customer that everyone is searching for, but essentially this is the same as selling the $2.00 phone cards that are very popular in the US prepaid marketplace. Ultimately, real-time top-up reduces fraud dramatically as there is no card that can be duplicated and presented as inventory. With top-up, as long as the remitter is in proximity Image Source: Telefonica Movistar Website (www.movistar.com) of, or has communication with the responsible party, airtime are ripe for this service and capability, but in balances can be checked and verified. Real-time large metro cities and rural agricultural areas top-up also provides a more concise method of where migrants flock for work, it is an important keeping the books on accounts. Statements of tool that can add new revenue streams and new all mobile transactions are available and can be customers. As a result, almost every major service provider is working with partners to develop international or cross-border services that keep International mobile top-up is U.S. based immigrants in touch with friends and families at home. As migration increases and predicted to be the “killer app” borders decrease in our rapidly changing new in the prepaid and remittance world, providing international services such as marketplace this year. mobile top-up and cross-border bill payment will position participating companies for worldwide expansion and opportunities. used as additional verification to reconcile. Bruce Burke is Director of Marketing & International mobile top-up is predicted to be Sales for iPayStation. He can be reached the “killer app” in the prepaid and remittance at bruce@ipaystation.com. marketplace this year. Obviously not all markets http://www.movistar.com http://www.incomm.com

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

Payments & Processing: Prepaid Debit Card Trends Contents The Retske Report: A Courthouse Divided Regulatory Rundown Prepaid Business: 5 Minutes With Darren Dat Lu, CEO of Lunex Group Prepaid Telecom: International Mobile Top-Up Virgin Mobile USA Compliance Plan Accepted by NYSE Tata Communications Launches One IP World KIT Communications Selects PhoenixSoft Sprint Nextel Increases Payments to Virgin Mobile Motorola, Sprint and Boost Mobile Welcome iDEN Flip PhoenixSoft Announces New Program Virgin Mobile Partners with Susan G. Komen The State of Prepaid Technology: Prepaid Virtual Operators Emerge Prepaid Wireless Roundup Boost Launches ‘Monthly Unlimited’ in More Cities Cricket Selects Callidus On-Demand Solution ICC Worldwide Expands Prepaid Products IPsmarx Launches SIP Based Card Platform The Legal Line Prepaid Telecom in Brief Pinnacle Rolls Out Ingenico’s Payment Terminals TransCard Makes Staff Announcements H&R Block Bank Selects MasterCard Avangate Pays Vendors and Affiliates with Prepaid MC TIO Networks Announces Grant of Stock Options TSYS Offers Enhanced Loyalty Solution First American Payment Systems Inks Deal with RDM Hypercom Introduces HyperSafe Remote Key System i2c Expands Team iPayStation Integrates with Movistar Payments & Processing in Brief New Javelin Report on Evolving Prepaid Card Market TransCard, Socialwise Plan to Revolutionize Prepaid Congresswoman Introduces Financial Literacy Act Industry Analysis on Mobile Banking Available Gift Cards & Promotions: Seven Cost-Conscious Marketing Strategies for 2009 Ntreev USA Announces PvP Tournament hhgregg to Help Circuit City Customers NRF Releases December Industry Sales Cellfire Expands Kroger Mobile Coupon Program Petrofix.com Offers a New Fuel Solution Gift Cards & Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - February 2009

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.