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News
Madeline Aufseeser, Senior Analyst
at Aite Group LLC, believes that the
USPS has the distribution network
"I don't think they really have a clue as to for a successful GPR card program,
what it's going to take. And I think their but that the postal service's goals
are impractical. "I don't think they
expectations are not exactly realistic." really have a clue as to what it's
going to take," she said. "And I think
– Madeline Aufseeser, Aite Group LLC their expectations are not exactly
realistic."
Aufseeser said the USPS has not
factored in the additional operational
costs, such as more staffing and
increased business hours, needed
to support a GPR card product. But,
according to Aufseeser, the biggest
mistake the USPS made is the
projection of the revenue potential
for its financial services proposal.
"They think they can generate 10
percent of the total revenue that
that [unbanked] population derives
today," she said. "And I think that's
extremely overly optimistic."
Aufseeser noted that the GPR card
market is a mature one, with the
Green Dot Corp., NetSpend Holdings
Inc. and H&R Block dominating
over 60 percent of the U.S. market.
And newer players like American
Express Co. and JPMorgan Chase &
Co. have added their GPR products
to the already crowded field.
"It's going to take [the USPS] years
until they can achieve the same level
of market share that these other
players have," Aufseeser said.
The USPS apparently also failed to
take into account that the GPR card
market is ripe for consolidation.
Aufseeser said that too many
program managers and processors
are vying for slices of the prepaid pie.
"The concentration of the business is
such that the market cannot support
all these players, and the margins
on this business are razor thin," she
said.
Aufseeser added: "For them to think
they are going to get 10 percent of
the market share on mature markets,
it just does not seem credible to me."
18
Madeline Aufseeser, Senior Analyst
at Aite Group LLC, believes that the
USPS has the distribution network
"I don't think they really have a clue as to for a successful GPR card program,
what it's going to take. And I think their but that the postal service's goals
are impractical. "I don't think they
expectations are not exactly realistic." really have a clue as to what it's
going to take," she said. "And I think
– Madeline Aufseeser, Aite Group LLC their expectations are not exactly
realistic."
Aufseeser said the USPS has not
factored in the additional operational
costs, such as more staffing and
increased business hours, needed
to support a GPR card product. But,
according to Aufseeser, the biggest
mistake the USPS made is the
projection of the revenue potential
for its financial services proposal.
"They think they can generate 10
percent of the total revenue that
that [unbanked] population derives
today," she said. "And I think that's
extremely overly optimistic."
Aufseeser noted that the GPR card
market is a mature one, with the
Green Dot Corp., NetSpend Holdings
Inc. and H&R Block dominating
over 60 percent of the U.S. market.
And newer players like American
Express Co. and JPMorgan Chase &
Co. have added their GPR products
to the already crowded field.
"It's going to take [the USPS] years
until they can achieve the same level
of market share that these other
players have," Aufseeser said.
The USPS apparently also failed to
take into account that the GPR card
market is ripe for consolidation.
Aufseeser said that too many
program managers and processors
are vying for slices of the prepaid pie.
"The concentration of the business is
such that the market cannot support
all these players, and the margins
on this business are razor thin," she
said.
Aufseeser added: "For them to think
they are going to get 10 percent of
the market share on mature markets,
it just does not seem credible to me."
18
