META FINANCIAL SERVICES/CASH must find a way to continually acquire new customers.

AccountNow to buy nFinanSe:

Everyone Buying New Customers

META FINANCIAL SYSTEMS/CASH out to buy customers … see how
November 14th, 2012

In a transaction that probably reflects the increasing priority for prepaid card program managers to lower their customer acquisition costs, AccountNow has announced that it intends to buy nFinanSe. Most likely, the key value for AccountNow, a mid-sized prepaid PM whose cards are marketed over the internet, is to gain the foothold established by nFinanSe in several national retail stores. [ AccountNow is part of META PAYMENT SYSTEMS. They have the money to buy out nFinanSe…. PM Card is an unknown entity]

nFinanSe is a small prepaid card program manager whose relative anonymity obscured its excellent offering. AccountNow,by contrast, is a relatively large PM whose stumbling block to gaining market share has been its lack of presence in any retail stores.

[ PM??? are we still speaking English here?   Lack of clarity in the usage of PM here…

PM 
Definitions:
(i) Prime Minister
(ii) Private Message
(iii) Personal Message
(iv) Post Meridiem

(i) is usually used iRL;
(ii) is usually used on forums or chatrooms (eg. iRC)
(iii) is uncommon but still used by some people.
(iv) used commonly for time.]

This small transaction could be a part of larger things to come. The tea leaves in prepaid point to an era of margin compression, as more competition in retail stores puts downward pressure on prices. Green Dot has benefited from exclusive agreements with national retailers, but earlier this year it announced that several were going to expire.[ Green Dot is a big scam… they should expire!!]

The threat of compression could be more than enough to trigger a wave of consolidation. For the moment, prepaid is incredibly fragmented. That diversity is most prevalent among program managers and less so among issuers or processors.

About nFinanSe

nFinanSe cards distinguished themselves by their cost. The cards came with free customer service and no transaction fees. It also costs less to load them. nFinanSe cards can be loaded with a Reload Pack for $2.95.[ It costs money to get a total stranger to hold your money away from you??? This is so odd!!!] Given that other loads (Moneygram, ReLoadIt and Green Dot MoneyPak) [ All META BANK creations too!!!] can cost more than four dollars, the cards give consumers an opportunity to save money. [Save money by spending money to load a card. Their money is then held by an unknown entity. The customer’s money is then out of their own control and into the hands of an arbitrary and greedy entity.]

I think its likely that the key value of nFinanSe to AccountNow is their reach in stores.

“There are going to be winners and losers  in GPR,”[ I assume to be General Purpose Reloadable ( debit cards.)]

Certainly, AccountNow will have to pay the stores that put their cards in their racks.[ So that is how it works?]

nFinanSe cards are available in Dollar General [ a META BANK strong hold] , Northeastern convenience store chain Cumberland Farms and TA Gas.[ Now you know where not to shop!!!]  said Mike Harris of Core Innovation Capital during a Tuesday webinar.

“The key question is distribution channel. [Companies want to] control customer acquisition costs.” [ But META BANK has always tried to trick their customers; it is a scam for this reason.]

Until now, the status quo at AccountNow had been to attempt to drive applications to its web site. That may have been accomplished through lead generation, where standard business practice is to sell leads to the highest bidder in an auction that lasts only a few seconds, or through more traditional internet advertising. Opening new accounts on the internet is expensive not just because of the cost of finding customers. Its even more problematic because many people sign up for a card but then never activate it.  [ Oh and the ramifications of this are???]

These agreements are vital because they will enhance the ability of AccountNow to generate new customers.[ Generating new customers may be the real focus here because META FINANCIAL PRODUCTS tend to destroy the customer base for any and all partner companies that are used to promote their product.] In the GPR market, where so many people hold their accounts for a short time, companies have to win new accounts every day in order to survive.

The agreement also promises that AccountNow will earn some cash flow on reloads.

Unlike the MoneyPak, an nFinanSe card can be reloaded immediately. When a consumer buys a load their funds are available as soon as the clerk swipes their card and scans the reload bar code.

By contrast, most reloads require the consumer to enter a unique code from the reload packaging on to a secured web site. Thus, the consumer gets two value propositions: lower price and quicker utilization.[ So what is the trick for this card then? I ask this because all of the other products offered by META FINANCIAL SYSTEMS/CASH has had a very negative twist, that is a very negative side that was most harmful to any and all consumers who may buy into this concept…. I had to learn the dard way and I want to protect others from the same fate!!!]

At the time of the sale, one share of common stock in nFinanSe was trading for 8/100ths of one cent. Today, the price has dropped to just 5/100ths of one cent. On Tuesday, nFinanSe common stock had a market capitalization of $25,500. Its capital came largely from debt. [ Capital from debt? Whose debt?]

Green Dot’s Advantage

If it does become true that the prepaid sector begins a wave of consolidation, then the winners will be those that have the flexibility to act when opportunities emerge. [ Prepaid sector to begin a wave of consolidation???? Really? What does this mean for the consumer?]

No one is better positioned to take advantage of a buying opportunity than Green Dot. Last quarter the company reported that it had approximately $200 million in cash, cash equivalents, and short-term investments on its balance sheet.[ Green Dot is a subsidiary or just another name for one of the branches of META BANK/META FINANCIAL SERVICES/CASH]

NetSpend, by contrast, had just $26 million. Green Dot has no long-term debt. NetSpend has $70 million in long-term debt.

It is separate question as to if the two big guys have similar acquisition needs. Green Dot has a bank, for instance. NetSpend’s retail relationships trend toward other unbanked financial services providers – particularly with payday lenders – whereas Green Dot has always marketed through traditional retail first.

Nonetheless, both have the same need as the one that probably underlies the motives of AccountNow: they must find a way to continually acquire new customers.

 

Filed under: unbanked | Tags: AccountNow, lead generation, nFinanSe, prepaid
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Perfect Money- Prepaid Cards available now


Payment System Gold USD EUR
Today prepaid cards are indeed one of the most innovative and most popular financial products on the payment market. [ Popular with META BANK like institutions, but horrible for consumers.]

They are something that everyone should be made aware of. However, many people do not know what prepaid cards are, and how they can benefit you. [ I found out how they are used to scam the average person so I must warn you not to opt in to getting a prepaid bank card or prepaid card of any kind!!!]

 

Prepaid cards can be useful for anyone who wants to control their spending, and locally in those areas where banks are not available in order to fund PerfectMoney accounts, in any country in the world. [ Please note that this is a hook and all that you are doing is giving your money over to someone who will take advantage of your inability to control your own money!!! Don’t opt into the PREPAID CARD option. Keep control of all of your own assets. Global concept that simply doesn’t work from a consumer’s perspective]

Advantages for PM Prepaid Cards users:

Instant funding of your PM account while buying a card locally. [And if you kept your cash in hand, then you would have access to your money even quicker and without any fees.]
While buying a card locally, you save a lot of extra money on fees and lots of time, instead of going to your bank and spending money and time in order to send a bank transfer. [ That personal contact and that face to face encounter with the people with whom you are entrusting your money is very important. For one thing, looking you in the face and lying to you in a face to face encounter is less likely.]
An opportunity to easily fund your PM account by using cash. [ They will only accept cash so there is no way to protect your right as a customer because there is no paper trail. Once they have your money, they also have full control of your money and you don’t… conceptually and in practice these PREPAID CARDS are not customer friendly as the publicity would like you to think.]
Once you get a card – it is up to you whether you want to fund your PM account or purchase goods and pay for services instantly without opening a PM account. [ So just pay in cash using your own money and avoid this profiteer middle man who will just create all sorts of

 obstacles to keep you and your money separated.]

Consumers

A prepaid card can also be purchased in your city. We regularly update information about retail locations at this page.

Wholesalers and retailers

Start selling PM Prepaid Cards in your city locally or online. Click here. [ Easy to opt in, but awful in practice and in ordinary use. Be forewarned to steer clear of these PERFECT MONEY CARDS; they are nothing but a major scam!!!]

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