Western Union Extends Prepaid Cards to Retail Outlets Through InComm

The Western Union Co. is stepping up its presence in the general-purpose reloadable prepaid card market with a new agreement to offer its MoneyWise Prepaid Card at InComm retail locations throughout the U.S. InComm, a marketer, processor, and distributor of stored-valued gift and prepaid cards, has partnerships with more than 150,000 retail locations.

Western Union already offers the MoneyWise card online at WesternUnion.com and through its 46,000 agent locations in the U.S.

The agreement with InComm, announced Wednesday, is an extension of a December 2009 agreement in which InComm offers Western Union’s GoCash service, an in-lane money-transfer service. GoCash enables consumers to pay for prepaid domestic and international wire-transfers in denominations of $50, $100, and $200 at retail locations served by InComm. The purchaser then needs to call Western Union\'s customer-service line to actually make the transfer.

Under the agreement, Western Union will offer the MoneyWise card to consumers through grocery and convenience stores, pharmacies, and mass-merchandiser locations.
 
\”As prepaid products continue to gain momentum with consumers, particularly in today\'s economy, Western Union sees its suite of prepaid card services as an opportunity to continue strengthening both its relationship and value proposition with consumers seeking convenient prepaid services, and mass-market retailers preferring to efficiently manage prepaid services at the checkout counter,\” said Stewart A. Stockdale, Western Union’s president of the Americas and executive vice president of  global cards, in a statement.

Contacted by Digital Transactions News, a Western Union spokesperson would not provide any projections of revenues from the deal or given any of the financial arrangements with InComm.

MoneyWise can be used at any location or ATM where Visa and MasterCard debit cards are accepted. Consumers can reload the card, which is issued by MetaBank, at participating Western Union and InComm retail locations, online, or through direct deposit from an employer.

The MoneyWise card is a part of a suite of prepaid cards offered by Western Union, including the Western Union Gold Card, a reloadable prepaid card linked to the company’s loyalty program.

The agreement between InComm and Western Union is a “positive sign” for the industry, helping to drive consumer awareness of prepaid products, says Gwenn Bezard, research director for the Boston-based Aite Group.

“The joint marketing of all these companies is going to expand the pie” for the prepaid industry and could help move prepaid cards from a product only for the unbanked to a “mainstream product for even affluent consumers,” Bezard says.