Strategy 14

Loyalty ProgrammeBranded CardsXMS - Mobile Banking

What is a prepaid card?
A prepaid card is simply a “plastic card” which allows you to load money onto it and only be able to spend what is actually on the card.

Just a like a mobile phone “top-up” card.

There is no credit available to you, which means NO CREDIT CHECKS are required.

Virtually everyone can have one!


Our prepaid card is a Maestro card, which is fully supported by MasterCard – you do not carry any of the banking risks for branding a card.
All cash movement is done via Newcastle Building Society, who has chosen to specialise in this area and handle the vast majority of all UK prepaid cards. Newcastle Building Society is an agent of MasterCard and protected by the MasterCard brand.

Prepaid cards will be accepted by millions of retailers – effectively those that accept MasterCard.

Prepaid cards can be used to draw cash from ATM machines (just like a MasterCard) and can be uploaded from other credit cards, with cash at Post Offices and many more facilities.


News
Prepaid card ownership has really taken off in the USA, with 1 in 3 people having one and nearly $200bn dollars spent via such cards in 2007.

Prepaid cards in the UK are set to follow suit and explode in take up rates over the coming years.
Currently there are approximately 2.3m cards in the UK and this is expected to increase to 20m by 2011.
Exceptional growth!!

The factors contributing to this move to prepaid cards include,

1.
Only approx. 40% of the population can get a credit card
2.
The “credit crunch” in the UK will reduce this figure
3.
It has always been difficult for people under age 25 to get a credit card since they do not have any credit history.
4.
Credit card Fraud is now a major issue – particularly for internet transactions However, with a prepaid card, the only money at risk is what is on the card. You cannot be “ripped off” for money you don’t have.
5.

Many major retailers, e.g. Tesco, and petrol stations, e.g. Shell, no longer accept cheques – so no “plastic” means you need to carry lots of cash.

Virtually everyone can have a prepaid card –
even kids from age 13!!

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