MILWAUKEE, Dec. 26, 2006 鈥?Metavante Corporation today announced it is the first certified and first operational processor supporting reload transactions on a leading international card association's prepaid card load network. Metavante is the banking and payments technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI).
On Dec. 4, 2006, the card association issued a news release in which it stated the prepaid load network allows consumers to add funds to eligible re-loadable prepaid cards at participating retail locations. According to the announcement, the service has been introduced at more than 1,550 retail locations nationwide including participating Safeway, Carrs, Dominick's, Genuardi's, Pak 'n Save, Pavilions, Randalls, Vons and Tom Thumb stores.
Processing reload transactions allows Metavante to help prepaid card issuers, such as financial institutions, realize the full potential of the checking account alternative that enables electronic payment card transactions for the un- and under-banked population. As Metavante helps make it easier for cardholders to reload eligible prepaid cards at convenient retail locations, a financial institution can benefit from increased card use, promote its brand with un- and under-banked consumers to potentially develop a traditional banking relationship, and gain wallet-share of a consumer otherwise out of reach.
"Without convenient reload, prepaid cards have largely been disposable, which limits their ability to act as a full-service alternative to a checking account and the accompanying payment cards," said Frank D'Angelo, group president, Metavante Payment Solutions. "Marrying expedient reload to prepaid cards creates the opportunity for people without a traditional banking relationship to carry a full-fledged payment card that's arguably as easy to reload as a checking account."
According to a recent Celent payments industry analyst report: "There are an estimated 14 million un-banked households in the U.S鈥nd [prepaid debit] holds value because it stands to capture segments of the market other electronic payments [credit and debit] could not otherwise touch. This is particularly the case among the un-banked and youth populations that have limited access to such accounts." 1
"Every year card-based payments chip away at the market share of cash and checks and the advent of online shopping and electronic payments has accelerated that trend. By supporting an easier way to reload prepaid cards, Metavante helps open the world of online transactions to consumers such as teens, who often have disposable income to spend," added D'Angelo. "Metavante offers the most comprehensive suite of payment solutions and as evidenced by our support of prepaid reload, we continue to provide and support the newest payment technologies."
About Metavante
Metavante Corporation delivers banking and payments technologies to financial services firms and businesses worldwide. Metavante products and services drive account processing for deposit, loan and trust systems, image-based and conventional check processing, electronic funds transfer, consumer healthcare payments, and electronic presentment and payment. Headquartered in Milwaukee, Metavante (www.metavante.com) is wholly owned by Marshall & Ilsley Corporation (NYSE: MI).
1 Celent, "The Future of Consumer Payments," Nov. 2006, Ariana-Michele Moore, Senior Analyst. It's certainly a symptom!
Fewer and fewer merchants take checks. Consumers can't make hotel reservations, take advantage of special internet pricing or internet exclusive products, purchase at the ever growing number of un-manned retail locations (gas stations, etc.), rent a car or sometimes even order food for delivery without a credit/debit card of some sort. COD is almost non-existent.
Prepaid cards offer the ability to do these things as well as many others for demographics who are not able to obtain a credit/debit card. Once this method of payment is fully accepted by this demographic, the need for cash will be greatly lessened. I just don't think that this will happen anytime soon. |
