You probably know MoneyGram as the company that provides money order and money transfer services. Now MoneyGram has teamed up KeyBank to take on the prepaid market, offering a new prepaid debit MasterCard. Details can be found below in the snippet from a press release issued today:
"MoneyGram will debut its new prepaid card program to the convenience store industry during the annual National Association of Convenience Stores (NACS) Show, Nov. 15-18 in Las Vegas. The company expects a full launch of the MoneyGram Prepaid MasterCard® card program in the U.S. in 2006, but select agents will be invited to sign up for early roll-out.
With the prepaid debit card program, MoneyGram is expanding into a new line of payment services. Currently the company is a leading provider of money orders in the U.S. and major provider of global money transfers services, but this is the first time it has offered a card product.
The MoneyGram prepaid card, issued by KeyBank, will sell for $9.95 and enable customers to 'load' cash onto the card at more than 20,000 MoneyGram locations in the U.S. The stored funds can then be withdrawn at more than 900,000 ATMs or used to make purchases at more than 24 million locations around the world.
'We're excited about the prepaid card,' said Phil Milne, president and chief executive officer of MoneyGram International, Inc. 'It will meet the needs of the unbanked or underbanked customer who does not qualify for traditional credit cards. Whether traveling or shopping, it's a more convenient and safe way to carry cash, and unlike cash or checks, the MoneyGram prepaid MasterCard card can be replaced if lost or stolen.'
'MoneyGram is thrilled to bring this opportunity to the convenience store industry. We feel there is a strong overlap in the demographics of the money order, money transfer and real-time bill payment customer with the prepaid card customer,' said David Karl, vice president of business development and sales at MoneyGram. 'People using MoneyGram services at convenience stores appreciate fast and efficient service. MoneyGram's prepaid card fits right in with this model, with no need to worry about exact change or having enough cash on hand for convenience purchases.'
MoneyGram's prepaid card currently is sold in a limited number of locations in New York and Miami. Prior to the full rollout of the card program next year, MoneyGram plans to begin offering the cards in key markets around the country.
According to Ted Dargan, MasterCard International's vice president, stored value team lead for the Americas, MoneyGram's industry expertise ideally positions the company as a marketer of prepaid MasterCard cards.
'The MoneyGram prepaid MasterCard is a powerful and versatile payment solution for consumers who desire the advantages that payment cards deliver over cash and checks,' said Dargan. 'MoneyGram's industry leadership and deep understanding of consumers with non-traditional banking relationships are important to providing this customer segment with a prepaid card that delivers tremendous value.'
MoneyGram International, Inc., (NYSE:MGI) is a leading global payment services company and S&P MidCap 400 company. The company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram has 84,000
money transfer agent locations worldwide in approximately 170 countries."