UK prepaid card vendor Tuxedo closes £17m funding round

UK prepaid card vendor Tuxedo closes £17m funding round

UK prepaid card programme service provider Tuxedo Money Solutions has completed a significant funding round with all major shareholders participating.

David Dey, chairman of Tuxedo commented: "The company has performed remarkably well in the final quarter of 2008 in all areas of the business. We have launched several revolutionary new services on our industry leading eccount platform and have now completed the patent application process for the new technology we have developed. We have also expanded successfully in the corporate sector and our consumer programmes are doing well. Results for the final quarter are ahead of budget and several major wins in both markets have added even greater value to the company. This has given the shareholders confidence to invest substantial additional funds in Tuxedo. The outlook is certainly very positive."

Tuxedo has signed an agreement with a leading UK retailer this month to provide several thousand staff with payroll cards to replace cheques, and have announced a strategic agreement with Bond International Software, a global provider of recruitment and human capital management software & services, to offer payroll, expenses, rebate and other prepaid card products to their substantial client base. The Tall Group of Companies, the UK's leading provider of special cheques, credits, secure encoded document solutions and streamlined payment systems has also partnered with Tuxedo to offer prepaid card products and services to its 30,000 corporate clients.

Recently Tuxedo completed exclusive agreements to provide its eccount and prepaid card service to over 500 of the world's super yachts for expenses and staff payroll. Earlier this month it also launched a prepaid card based reward programme for 4,000 distributors of one of the worlds largest mobile networks.

Tuxedo says it is currently developing several large programmes including prepaid forex cards for the one of the UK's premier foreign exchange services groups, to be launched in early 2009. This follows on from the launch of five new white label consumer programmes in the last quarter of 2008.

Tuxedo says it has also finalised an agreement with the Post Office to enable all its existing partner programmes - comprising of over 50,000 active cards, to be topped-up at 14,000 post offices in the UK from January.

On the technology front, Tuxedo has added several new payment services to its eccount platform including direct debit payment, standing order and cheque cashing  services which will substantially enhance the Tuxedo product for the debt management, unbanked and underbanked sectors.

In November 2008, Tuxedo completed the roll out of its unique Mobile eccount service, enabling users to manage and control their money and prepaid cards from their mobile phones, to all their partner products including The Sun, The Times, STA Travel and News of the World.

In January 2009 Tuxedo will add an additional 3,000 qualifying stores, including SPAR and Co-op Group outlets, to the selected 6,500 retail sales distribution points already selling the Tuxedo MasterCard Prepaid Card retail pack. Tuxedo will also commence development work in the new year on a new multi-faceted instant issue card product to be distributed through 19,500 PayPoint stores nationwide.

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