Digital Transactions Authoritative, insightful and timely information for payments professionals
Wireless provider Virgin Mobile USA LLC on Monday introduced a reloadable prepaid card that will allow its 4 million mostly young subscribers to pay for goods and services at stores and on the Web, pay bills, and send cash to one another. The card, a Visa-branded product Virgin calls the “Stash” card, also offers users free air time tied to spending. The product represents the first branded debit card for Warren, N.J.-based Virgin, one of the first so-called mobile virtual network operators (MVNOs) in the U.S. MVNOs resell airtime as well as data products such as games and ring tones on behalf of cellular networks and have taken over an increasing share of prepaid cellular business in the U.S. and abroad (Digital Transactions News, Feb. 9, 2005). Virgin, which represents the Sprint Nextel network, launched four years ago and has appealed mostly to teenagers and young adults. It is working with prepaid processor and marketer NetSpend Corp., Austin, Texas, to offer the Stash card. Users can reload the card online and at any retail location in NetSpend's network, which includes Safeway Inc., Pathmark Stores Inc., and H.E. Butt Grocery Co. (HEB). “The launch of the Stash card marks a new breed of reloadable private label prepaid debit cards with significant added features that we developed for Virgin Mobile,” said Rick Savard, chief executive of NetSpend, in a statement. “With teens spending almost $160 billion annually, the importance of this market cannot be overestimated.” The new card, which is issued by Inter National Bank, McAllen, Texas, can be reloaded by means of credit cards, direct deposit, cash, PayPal, or automated clearing house debits and can be used to make purchases at any store or site, or withdraw cash at any ATM, that accepts Visa. Users can also use the card to send cash to other cardholders through the Stash Web site or a hotline phone number. Virgin charges a monthly fee of $5.95, with free purchase transactions, a $2 fee for domestic withdrawals and a $3 levy for overseas withdrawals. Users who forgo the monthly fee pay $1 for each purchase transaction. Person-to-person transfers carry no charge. The program includes alerts that Virgin sends to subscribers' mobile phones giving account balances and summarizing recent transactions. The card's marketing program offers one point for each $1 spent on the card. Rewards points can be redeemed for airtime and expire after one year of card inactivity. In other prepaid card news, top Visa gift card issuer U.S. Bank announced Monday it has issued 10 million gift cards and expects to pass the 15-million mark this winter.
