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Stored Value
Unlike
traditional credit cards, the Cardlinx Stored Value MasterCard does
not extend credit to the cardholders. Instead, accounts are pre-paid
for a specific amount while still being backed by MasterCard for near
universal acceptance. There is no line of credit and accounts are only
good for the balance applied.
The Stored
Value market is large and growing. It is considered one of the largest
markets for consumer payment vehicles.
Stored
Value or pre-paid payment solutions provide many options not previously
available.
Under-banked
/ Lost Consumer
The Specialty Finance Report, prepared by Stephens, Inc., states that
30-40 million US households are either un-banked and/or have sub-prime
credit risk and 40% of US households are without unsecured credit cards.
The estimated spending power of this group is $450 billion annually,
which today is spent almost exclusively in cash. The Cardlinx Stored
Value Card is, in many cases, the only option for this segment to have
access to the security and benefits otherwise associated with credit
card ownership.
Teens
31 million strong, the teen market spends over $140 billion annually.
The population is expected to grow by 16.5% over the next ten years.
Currently, there are limited options for teens to conduct e-commerce
and most teens have no access to credit. The Cardlinx Stored Value Card
presents a vast opportunity to enable e-commerce for this market segment,
while also teaching fiscal responsibility.
College Students
Currently, over 16 million individuals are enrolled in US colleges and
universities with over 4 million new students each year. With an estimated
55% of students receiving some financial allowance from parents, funds
transfer via the Cardlinx Stored Value Card permit an excellent application
of the technology.
Overage
For the same reason parents want a say in how their children spend their
money, children of aging parents want to protect their parents from
unscrupulous vendors by limiting the amount they can authorize.
International
Funds transfer to other countries is a wide, untapped, market for the
Stored Value Card industry. Three primary applications exist: 1) Transferring
cash from the US to friends or relatives in other countries, since cash
transfer is expensive and inconvenient 2) allowing US travelers to carry
'cash' overseas in pre-determined denominations; 3) the ability for
foreign populations to enjoy the advantages of e-commerce, as Stored
Value Cards are the ideal solution to their limited access to electronic
payment mechanisms. Given the diverse status of banking internationally,
this market represents significant global opportunities.
Loyalty / Rewards
Members of Loyalty and Rewards programs, sweepstakes winners or participants
in consumer membership clubs can be automatic recipients of a Stored
Value Card from the sponsoring organization, transferring "Value" to
their customers. Consumers are then able to enjoy the "Reward" anywhere
that MasterCard is accepted. Because companies are always looking for
unique and lasting ways to promote their brands, placing a Stored Value
Card in the hands and wallets of their customers allows a novel way
to stand out in the marketplace.
Corporate Incentives
The Nielson Report states that corporate motivational and reward programs
total $28 billion, with pre-paid accounting for the fastest growing
segment, now 14% of the total.
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