NEWS REPORT MasterCard RPPS's Value-Loading Network Helps Transform Prepaid Card Industry MasterCard RPPS Service Lowers Entry Barriers for Prospective Issuers of Popular Cards and Offers Higher Convenience for Consumers Prepaid cards are quickly becoming one of the most popular payment mechanisms for both issuing financial institutions and consumers alike. Incredibly versatile, the cards offer a wide variety of solutions—from payroll card to gift card, from pharmacy card to budgetary tool for credit counseling agencies—and a highly convenient way to exchange funds. Now, MasterCard RPPS offers a valueloading service for reloadable prepaid cards that will help transform the prepaid landscape, making the cards even more convenient for consumers and creating new opportunities for issuing financial institutions. Opening the door General-spend, or reloadable, prepaid cards can open a new revenue stream with tremendous potential for issuers. Up to now, however, prepaid card issuers had to drive cardholders to a physical location to reload. “For prepaid issuers, developing their own retail reloading relationships would take a significant amount of time and would require a large up-front investment, for business negotiations, systems development related to the merchant's connectivity, and funding for merchant training, ” says Karen Baum, Emerging Market Sales, MasterCard. “That has been an impossible barrier for many potential issuers. ” Now, with a value-loading network available through MasterCard RPPS—one that reaches virtually 100% of the entire bill payment market in the United States— issuers and consumers don't need to go to a physical reload location. “The distribution channel for reloading is already in place, and any institution can connect, ” says Baum. “Issuers can concentrate their resources on developing and marketing attractive programs, instead of on the reloading infrastructure.” Cardholder convenience For cardholders, the value-loading network makes the cards even more convenient. Instead of being restricted to particular retail locations and hours of operation, consumers can now set up their prepaid card issuer as a payee on their financial institution's online bill payment service and conveniently reload a card from anywhere, anytime. “When someone is using a prepaid card to send funds to a child away at college, for example, this is obviously a much better solution,” says Baum. In addition, with a reload network in place, consumers will be able to go to any connected location, such as a walk-in payment provider, virtually anywhere in the country to reload a card. Expanding universe MasterCard is actively developing prepaid applications that speak to cardholders' needs and replace cash and checks. “For example, for the segment that is unable to get a credit card, the prepaid MasterCard® card offers extensive worldwide acceptance,” says Baum. Credit counseling agencies are finding the cards a useful budgetary tool for clients on debt management plans. The cards help clients hold to a spending plan while providing a mainstream payment mechanism. “The prepaid universe is expanding, and MasterCard's solutions are being embraced by more and more consumers every day. Payroll cards can fund Flexible Spending Account benefits for employees, eliminating a cumbersome, paper-based reimbursement process, ” Baum adds. “Pharmacy cards are now being used for prescription copayments, replacing an expensive distribution process for drug samples.” Getting the pieces in place “Our network is expanding, as well, ” says Phil Skaggs, MasterCard RPPS. “We want to get all the major processors integrated into the value-loading network. With the processors on board, prospective issuers will have a turnkey solution at hand when they're ready to implement their prepaid programs. Issuers, of course, can depend on us to deliver the functionality they need for comprehensive, robust solutions.” For more information For information on the MasterCard RPPS value-loading network, please contact MasterCard RPPS Sales. To learn more about prepaid MasterCard programs, please contact Karen Baum at 914-249-4814 or via e-mail at karen_baum@mastercard.com.