Payments

Blackhawk Network Acquires InteliSpend using Credit Line of $175Mn

After the buying in credit fad died down, a new trend of buying in prepaid instruments emerged. Although initially lot of skepticism was attached to it, as people thought who in their right minds would pay for something beforehand. But things changed - prepaid merchants were able to provide more offers, more discounts and it worked.

Intelispend Prepaid solutions provides prepaid card services in the corporate incentives and consumer promotions marketplace. Prepaid cards are the answer to business needs that range from corporate incentives to consumer rebates to employee payroll.

Intelispend was formed as a joint venture by American Express and Maritz. Inc in 1997. The company was acquired by Blackhawk network on November 12th 2013. The company possesses an unsecured line of credit for $175 Mn with Safeway which it utilized to help pay for the acquisition. Blackhawk Network is one of the largest gift card distribution networks in the world and is owned by Safeway Inc. InteliSpend will now operate under Blackhawk as a business unit. The company is to report directly to the Blackhawk Network president Talbott Roche. InteliSpend’s headquarters will remain in Fenton, U.S.

InteliSpend Prepaid Solutions, LLC specializes in intelligent prepaid solutions for business.The platform allows us to design prepaid card products that can do anything possible for a prepaid card to do. They have a relationship with American Express, Discover, MasterCard and Visa which give the customers even more options.

Their patented process, DirectSpend, offers a unique type of card customization: selective authorization. This gives the customers the freedom to choose what merchants to include or exclude from card redemption. This has seen good response from the customers and helps to differentiate them from competitors.

They offer a wide range of products and services in the prepaid domain. Two special features include universal acceptance and selective acceptance. The cards are universally accepted and the customers have the right to choose selectively. Their rebates, loyalty and giveaways are quite popular because they can be tailored to choice.

LTP View: A wide range of offerings, network and clientele is what makes Intelispend tick. The acquisition plays a huge role in the future of this organization. InteliSpend has an impressive list of clients. They include 71% of the Fortune 500 and their satisfaction levels exceed 92% (industry best). This acquisition could benefit already strong Blackhawk Network tremendously.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

Apply to Become a Contributor