With prepaid debit cards surging in popularity, Vesta Corporation, a global pioneer and leader in electronic payments, today announced the launch of an innovative Web reload service for NetSpend Corporation, a leading provider of card-based prepaid financial products to underbanked consumers.
Powered by Vesta's payment technology, this industry-first service lets NetSpend customers immediately add funds to their prepaid debit cards from bank issued debit cards.
According to a newly released forecast by the Maynard, Mass.-based research firm Mercator Advisory Group, the market for prepaid cards looks extremely dynamic over the next few years. In its 2009-2012 forecast Mercator predicts general-purpose reloadable cards will reach $118.5 billion in loads by 2012 versus $8.7 billion in 2008.
"NetSpend works to give our cardholders the products and tools to make managing their financial lives easy, convenient and secure," said Dan Henry, chief executive officer of NetSpend. "We turned to Vesta because of their reputation and track record. Vesta's payments and transaction technology allowed NetSpend to quickly implement this new convenient and secure channel our cardholders can use to reload their cards."
NetSpend cardholders can now add up to $250 to their prepaid debit cards from any bank debit card. Unlike other online reload services, new funds are added in real-time to the cardholder's account, making funds immediately available. Other online reload services can take as long as five days for funds to be ready for use. With Vesta managing online reload transactions, NetSpend cardholders can now reload their prepaid debit cards without having to visit a point of sale location.
Vesta's program includes an innovative gifting feature that allows a customer to invite friends and family to contribute to a prepaid account. Invitations are delivered by email and include a link to begin the reload process. If desired, contributors can set up an account to expedite future reloads, further simplifying these person-to-person payments.
Vesta's technology includes proprietary account verification and risk management practices that enable the provider to fully fraud-indemnify NetSpend from any costs resulting from fraudulent tra transactions. In addition, Vesta brings full PCI Data Security Standard (PCI DSS)-compliant payment processing to Web reloads.
"As an innovator in value-added payments services, Vesta brings a unique perspective to evolving industry needs," said Doug Fieldhouse, Vesta's president and CEO. "Vesta plans to work with NetSpend to develop new products for the rapidly growing number of prepaid debit card customers."