The Green Sheet Online Edition
May 5, 2012 • 12:05:01
Prepaid in brief
NEWS
Mass transit pilot enters phase two
Cubic Transportation Systems Inc., developer of the PATCO Wave & Pay Anywhere Visa Prepaid Card, entered stage two of its mass transit pilot. Port Authority Transit Corp. mass transit riders can use near field communication-enabled contactless cards, or a virtual card via a mobile wallet, to pay for fares at gates and parking terminals. PATCO operates the high-speed rail line between Southern New Jersey and Philadelphia.
Fraudsters turn to prepaid
In a Krebs on Security blog post, Brian Krebs reported a new fraud trend involves cyber thieves turning to prepaid cards to launder the proceeds from identity fraud schemes. Krebs said the trend arises out of a need by criminals to reduce their dependency on unreliable money mules. The blog post is available at www.krebsonsecurity.com/2012/04/thieves-replacing-money-mules-with-prepaid-cards/.
Refunds on TurboTax cards delayed
Intuit Inc. customers in the Jacksonville area who use its TurboTax tax preparation software and elected to have refunds loaded onto prepaid cards experienced delays in receiving refunds. TurboTax attributed the delays to an increase in industrywide tax fraud.
ANNOUNCEMENTS
Edenred shakes up management
Paris-based corporate prepaid card processor Edenred restructured its management team to pursue strategy and sustainable growth objectives. Details of the restructuring can be found at www.edenred.com/en/press/documents/cp_nominationscomexedenred_en.pdf.
CFSI's Gartner rings bell
Kimberly Gartner, Vice President of Advisory Services at the Center for Financial Services Innovation, took part in ringing the closing bell at the New York Stock Exchange on April 13, 2012. CFSI representatives were in New York to host a panel discussion on financial services innovation and technology as part of the NYSE's Financial Literacy Week.
Javelin delves into popular segments
Javelin Strategy & Research issued Prepaid Cards and Products in 2012, a report that said one out of every six Gen Yers and underbanked consumers use prepaid cards.
Parago surpasses 500,000 cards ordered online
Incentive and reward card processor Parago Inc. said 500,000 Visa Inc.-branded prepaid cards totaling $20 million in issued or loaded funds were ordered from the Parago Reward Ordering Portal, which went live in September 2011.
PIF reveals maturation of U.K. prepaid market
According to the Prepaid International Forum's PIF Data Aggregation Service, the number of prepaid card programs in the United Kingdom grew from 50 in 2007 to 229 in 2011. Robert Courtneidge, Chairman of PIF, believes the U.K. prepaid card sector is entering a period of consolidation, "though average transaction spend continues to increase."
SelectCore joins Global Prepaid Exchange Canada
Toronto-based prepaid card processor SelectCore Ltd. joined Global Prepaid Exchange Canada. The move represents SelectCore's desire to align itself with industry leaders and contribute to shaping industry best practices.
TSYS wins prize in the Middle East
Columbus, Ga.-based processor Total Systems Services Inc. (TSYS) won the Industry Partner of the Year Award at The VRL Middle East Prepaid Awards held March 21, 2012, in Dubai, United Arab Emirates. Additionally, Abu Dhabi Islamic Bank, a TSYS client, won a VRL award for its teen card, the Darhoom Card.
PARTNERSHIPS
Underbanked initiative launched
Prepaid card processor Fidelity National Information Services Inc. and Bank Freedom subsidiary PrepaYd Inc. will target the underbanked market with a mobile application that combines PrepaYd Wireless' cellular phone service and Bank Freedom's prepaid debit card programs.
Summer campers to get teen card
Socialwise Inc.'s teen card provider BillMyParents Inc. entered a partnership with summer camp technology firm Bunk1.com to provide a payment solution for summer campers and their parents. Bunk1.com services 2,000 summer camps in the United States.
i-Payout expands e-wallet
Online wallet platform operator International Payout Systems Inc. added the Global eMoney Network of U.K.-based prepaid voucher provider Ukash to the payment options available on i-Payout. According to IPS, the collaboration is expected to add "millions" of Ukash users to i-Payout.
U.S. Bank, FreeMonee motivate cardholders
U.S. Bancorp's primary financial institution, U.S. Bank, teamed with gift network operator FreeMonee to offer FreeMonee Gifts to U.S. Bank Check Card customers. Free Monee is cash from national merchants deposited into cardholder accounts to incentivize consumer purchase behavior.
Wright Express taps ReD for fraud protection
Corporate and prepaid fleet card provider Wright Express Corp. chose Retail Decisions Inc. (ReD) for enterprise fraud prevention. Wright Express integrated ReD Prism as a supporting tool to its in-house fraud initiatives.
ACQUISITIONS
Green Dot acquires Loopt
Monrovia, Calif.-based Green Dot Corp. bought Mountain View, Calif.-based mobile technology firm Loopt Inc. for approximately $43 million in cash and employee retention incentives. Green Dot said Loopt's Mountain View headquarters will serve as the hub for Green Dot's mobile technology and product development team.
APPOINTMENTS
Fernandes becomes VP at PrepaYd Wireless
Dylan Fernandes joined PrepaYd Wireless as Vice President of Wireless Business Development after serving as National Account Manager at Sprint Prepaid Group, which manages the Boost Mobile and Virgin Mobile prepaid phone programs.
Hernandez joins BillMyParents' board
Former First Data Corp. Executive Vice President William Hernandez joined the advisory board of BillMyParents to provide expertise on how to improve the program manager's teen payment brand.
Card Compliant taps Shulman
Stored-value card consultancy Card Compliant LLC hired Becky Shulman as Chief Financial Officer and Chief Operating Officer. Shulman, formerly Managing Director and Deputy Chief Financial Officer for LPL Financial, will lead Card Compliant's finance, accounting, operations and investor relations initiatives.
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