January 4, 2014
From $148 billion loaded by consumers onto the network branded prepaid cards in 2009, this sector has definitely gained the critical mass. The amount expected for 2014, as predicted by Mercator Advisory Group stands at $ 354 billion. To tap into this market, TransCard, a financial services firm founded in the year 1993 by Stephen Craig Fuller is doing a lot.
Today it is the leading provider of prepaid products to financial institutions from small SME’s to big houses. The company enables these institutions to grow deposits, fee income, deepen their treasury relationships, expand product offerings to the under-banked and turn unprofitable customers from cost items to contribution items. The current product portfolio includes payroll cards, general purpose reloadable cards and gift cards.
The latest news doing rounds is that the firm might be acquiring the operations of PayPartners which is a service provider of payroll cards and small and medium sized business. This deal is said to be very high on its strategic and synergy benefit ratings. However the deal value has been kept undisclosed. Addition of PayPartners arm into its business will enhance TransCard’s offering to partners through a dynamic combination of platform and expertise. Further the cloud based BackOffice Portal of PayPartners’ will complement TransCard’s offering to financial institutions, making it easy to issue and manage payroll card portfolios. TransCard will be able to extend its offerings network to over 260 financial institutions. On the other hand, PayPartners’s clients will benefit from an enhanced cardholder experience, 24X7 customer care and other unique platform benefits of TransCard thus obtaining a complete pay card solution.
TransCard also announced their intent of forming a separate division called TransCard Ventures which would be solely focused on acquisition of prepaid program manager, portfolios, team and technology. This has been done to direct efforts on specific market segments, to diversify and penetrate the existing customer network and collaborate with potential partners.
Not limited to these, TransCard will be providing operational support and customizable marketing materials to Jack Henry Associates which is another leading provider of technology solutions and payment processing services. Topeka, Kan.-based CoreFirst Bank & Trust had been investigating prepaid payroll solutions to allow employers to use payroll cards as the alternative payment method to direct deposit. The bank has elected to deploy the Jack Henry & Associates/TransCard solution to meet its market and customer demand.
Earlier this year, TransCard acquired HQ, the leading program manager of mail based prepaid card programs. This deal would be a big opportunity for TransCard to open new retail distribution channels for a wide variety of prepaid products and expand markets. HQ Gift Card provides management services for more than 300 malls and casinos. They are the only industry player with the specialized experience and knowledge base to offer a complete turnkey solution, including training in sales, marketing support, logistics and administration to the shopping center and casino industries.
With the acquisition of HQ and organic growth of their core business, TransCard LLC is now thinking of expanding their operations. TransCard’s expansion is worth $925,000 investment and creation of 69 new jobs in Hamilton County. With an entrepreneurship DNA and aggressive M&A strategy, TransCard with its 180 bank network and 3% total banking market share is riding the clouds today.