Metavante Corporation, a leader in Internet bill pay services and prepaid card solutions, today announced the availability of Metavante Prepaid Bill Payment.
This new service makes bank-sponsored Internet bill pay available to consumers who use prepaid debit cards as an alternative to traditional checking accounts and banking relationships. Metavante is the banking and payments technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI).
By integrating its prepaid debit card fulfillment, personalization and account processing functionality with its Internet bill pay platform, Metavante enables financial institutions to offer an enhanced prepaid debit card program to their customers, both corporate and consumer. Corporations are increasingly turning to re-loadable prepaid payroll cards as an alternative to checks, and a growing number of consumers without traditional banking relationships are using re-loadable prepaid cards as their primary payment device. Now, this niche market gains the same functionality of Internet bill pay formerly reserved for those with checking accounts, and no longer needs to rely on non-bank payment mechanisms, such as walk-up bill pay kiosks.
"Integrating existing Metavante products, like prepaid cards and Internet bill pay, is the latest example of our corporate-wide focus on delivering products that work together, helping Metavante position its clients ahead of the pack," said Frank D'Angelo, group president, Metavante Payment Solutions. "It's no secret that prepaid cards build bridges between the under-served banking population, their employers and financial institutions. Getting a big piece of this market opportunity will require a competitive differentiator, and that is offering corporate clients more than just a prepaid payroll card program."
According to TowerGroup, a research and advisory services firm, "banks can improve their success rate in attracting and retaining customers by designing products for specific niche markets," such as the un- and under-banked.
"The benefits of enhanced prepaid card programs don't stop with banks and their corporate clients. People who cannot open a checking account, including consumers and employees, can take advantage of electronic transactions and another set of options to handle their banking and bill-paying needs," added D'Angelo.
Additional TowerGroup research illustrates the limited financial tools available to the un- and under-banked prior to enhanced prepaid card solutions: The consumer who is paid with a check, and does not have a deposit account with a bank, pays a premium first to cash the payroll check itself and, subsequently, to purchase money orders to make payments. These consumers bear the full risk for keeping their assets in cash.
How Metavante Prepaid Bill Pay Works:
- Cardholder logs onto bank-branded, Metavante-hosted card website
- Clicks on "Bill Payment"
- Seamless transition to bank-branded, Metavante-hosted bill pay website
- Cardholder begins making/scheduling payments (including recurring) and establishing billers etc. with the freedom to reach any biller
- "Good funds" - funds are validated prior to payments being initiated
- E-mail notification of confirmed payments sent to card holder