NextWorth announced yesterday that they would extend their payments options by launching a new prepaid card. The initiative of NextWorth by providing prepaid cards an alternative payment method is the first in the electronics trade-in industry. NextWorth claims that the card could be used everywhere Discover is accepted. Their website reads that NextWorth’s Discover® prepaid card is issued by MetaBank.
NextWorth’s existing payment platforms include cash, PayPal, Target Gift Card, check, etc. By accepting payments through NextWorth Discover® Prepaid Card, customers will see a bonus 5% on all trade-ins paid out.
Speaking about the lauch of NextWorth Discover® Prepaid Card, Jeff Trachsel, CMO of NextWorth says, “We’re constantly striving to make the trade-in process simpler and more profitable for our loyal customers. Adding the NextWorth Discover prepaid card as a payment choice makes NextWorth the best choice for those looking to upgrade to the latest technology or simply cash in and move on.”
NextWorth was established in 2005 and acts as an electronics trading platform where quality electronic goods are bought and sellers are paid in cash. When NextWorth started off its business operations it mostly was in the business of online auctions and earned revenue through commissions. Since 2006 their business model focuses on electronics trade-ins.
Back in September, 2013 NextWorth re-branded some of its existing features and also introduced its new “5-star price guarantee” site of features. Some of NextWorth’s features include:
- AccuQuote™ - NextWorth automatically forgives price differences that are less than 10 percent or ten dollars.
- Express Payment - Customers receive payment the next business day after the item is inspected.
- Free Shipping - A pre-paid UPS shipping label is automatically generated when the user confirms the quote.
- A+ Service Rating - In business since 2006 and with an A+ rating from the BBB, consumers can trust they’ll receive the best quote.
- 30-Day PriceLock™ - All quotes are valid for 30 days after they are issued.
Some of Networth’s competitors include Gazelle and Flipswap. Established in 2006 and with over $46 Mn in funding Gazelle’s business model is very similar to that of NextWorth. Payment platforms at Gazelle include check, PayPal or Amazon Card.
LTP View: According to research from Mercator Advisory Group, since 2009, the money loaded on to prepaid cards has doubled from $57 Bn to over $113 Bn. These statistics speak about the rise in prepaid cards popularity. Considering its increase in usage, the move to introduce prepaid cards as a payment platform could be welcomed by the traders at NextWorth. What would be interesting to note is how many of the traders still opt for cash over getting paid through prepaid cards considering the security risks prepaid cards carry. The addition of 5% bonus to receive payments through prepaid cards may certainly help in increase in awareness of the prepaid card scheme.