Payment network finds cash payers loyal
The electronic payment network, PreCash Inc., which turns cash payments into electronic funds transfers through its network of 22,000 participating US retail partners, has reported very high levels of user loyalty, and a total network transaction total of US$1 billion for 2003.
PreCash offers a simple alternative to customers who want (or need) to pay cash for subscription-based services such as mobile telephones, internet access, and cable or satellite television services. Traditionally, customers who don't have access to a credit card or bank account relied on disposable PIN-based or money transfer services.
But PreCash's patented process gives customers a reusable card that is permanently linked to their service account. The customer simply hands the PreCash card, along with any amount of cash payment, to any PreCash retail partner (including nationwide brands such as Sprint, Verizon, RadioShack, 7-Eleven, and Wal-Mart). The retailer swipes the card at a terminal and applies the payment to the consumer's service provider account, as an electronic funds transfer, within seconds.
"Research shows that half of our customers have used the card more than ten times, and close to 90% are repeat users," said Randy Templeton, senior vice president of marketing for PreCash. "By giving our customers another way to pay with cash, we have a unique business model that gives us the ability to increase loyalty among an ever-changing and dynamic customer base."
Chairman and CEO, John Chaney, added: "This validates our value proposition that PreCash is a welcome alternative for cash-paying customers, and that translates into increased loyalty for service providers and retailers as well."