Business & Finance
Business and Finance
Business and Finance
Thu, July 15, 2010 Prepaid Card Holdings, Inc. Seeks Institutional Investment from Venture Capital Firms, Private Equity Firms, or Sale / Acquisit
LAS VEGAS--([ BUSINESS WIRE ])--Prepaid Card Holdings, Inc. (Pink Sheets: [ PPDC ]), announced today that after a ten month extensive due diligence and integration process, the company's operating subsidiary has successfully launched and is currently issuing and managing prepaid card programs on a Tier 1 processor. The operating subsidiary first began issuing prepaid debit cards in February 2008 on another processing platform. The company believes this successful launch on a Tier 1 processing platform is an important asset to the companya™s future and a condition precedent to its ability to attract an institutional investment in todaya™s market.
"Ita™s a real catch-22 out there. Institutional investors have expressed a desire to invest in prepaid; unfortunately the prepaid segment of the payments industry is still in its infancy so most prepaid companies that desire funding dona™t meet the stringent investment criteria most institutions require"
aA prepaid debit card company must have a reliable institutional size processor if it wants to attract an institutional investment. We now issue prepaid cards on the same processor of a prepaid debit card company that stated to have received over $24,000,000 in funding, as well as another prepaid debit card company that stated to have received $7,000,000,a stated Bruce Berman, CEO of Prepaid Card Holdings, Inc.
Besides being a leading provider of debit card processing, the company's processor delivers banking and payments technologies to more than 14,000 financial institutions and businesses in over 100 countries worldwide, and maintains processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. The processor employs more than 30,000 on a global basis and is listed on the New York Stock Exchange.
Prepaid Card Holdings, Inc. through its operating subsidiary offers branded general purpose reloadable prepaid debit cards, branded prepaid business expense cards, branded prepaid payroll cards and co-branded reloadable prepaid debit card programs including a 1.6 million member union.
"Ita™s a real catch-22 out there. Institutional investors have expressed a desire to invest in prepaid; unfortunately the prepaid segment of the payments industry is still in its infancy so most prepaid companies that desire funding dona™t meet the stringent investment criteria most institutions require," continued Berman.
"Financial institutions looking to enter the prepaid space also have to weigh the 'buy versus build' model because until you have experienced firsthand the building process, ita™s impossible to understand how long the process takes to get fully operational let alone profitable in the prepaid space. Prepaid cards is one of the fastest growing segments of the payment industry. With our infrastructure, payments industry experience, multitude of successful prepaid card programs, key contractual relationships, and proven business model we hope to create the exception to the catch-22 rule so we can raise capital and grow our business faster.a
About Prepaid Card Holdings, Inc.
Prepaid Card Holdings, Inc. is a leading provider of financial services in the prepaid card industry. The company, under its Bank Freedom brand, offers prepaid debit cards to Americaa™s estimated 60 million underbanked citizens. The company through its operating subsidiary also provides co-branding program management services and is the program manager for the AFSCME® Advantage Prepaid Debit card, a 1.6 million member union. In addition to the underbanked consumer demographic; small, medium, and large businesses have found a much needed product with the companya™s Prepaid Business Expense Card Program. With the diminishing credit card markets, companies need a new way to fund employeea™s expenses other than through traditional credit cards or cash reimbursements. For more information about Prepaid Card Holdings, Inc. please visit [ www.PrepaidHoldings.com ]
FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties and the Company assumes no obligation to update any of the forward-looking statements in this release.
