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TAMPA, Fla. -- nFinanSe Inc. will reduce the retail price of its reloadable prepaid card to $3 from $5.95, effective July 1, to match a change Walmart announced—reducing its reloadable card to the same amount from $8.94, according to a report by Trading Markets.
Additionally, following the price change, nFinanSe said it will offer its reloadable cards through major retailers, including MAPCO Express convenience stores, with a $3 initial sales price, and continue its low $2.95 monthly maintenance fee, $2.95 reload fee, free 24/7 customer service and free direct deposit.
"Although there are 73 million American consumers in need of a reloadable prepaid card, there are substantially less than 10 million active cardholders nationally," Jerry R. Welch, chairman and CEO of nFinanSe, said in the repot. "We believe this is a direct result of the high fees most reloadable prepaid cards have carried: $9.95 initial sales price, $4.95 monthly maintenance fee and $4.95 reload fee."
According to Welch, the goal is to price nFinanSe product to encourage "mass market trial and usage" and that the company wants to offer retailers a comparable price and product to Walmart's reloadable card.
Analysts predict a doubling of the reloadable prepaid marketplace from $7 billion currently to $14 billion in 2011, driven by greater penetration of the unbanked/underbanked population, along with the individuals who find themselves maxed out on their credit cards and in need of an electronic payment tool for use in online and catalog shopping, the report stated.
Besides MAPCO Express, nFinanSe's Discover Network branded Reloadable Prepaid Cards are currently available at approximately 10,000 retail stores including Dollar General and Winn-Dixie.