Nigerian Prepaid Card Aims to Reduce Unclaimed Dividends (Aug. 27, 2013)
Aug. 27, 2013
A new prepaid card in Nigeria enables shareholders to receive dividend payments directly onto the card. The First Dividend Plus Prepaid Card is being billed as a “revolutionary product” by Verve International, the payment card provider that is releasing the card in partnership with stock registrar service First Registrars Nigeria.
The card is aimed at reducing the growing problem of unclaimed stock dividends in Nigeria’s capital markets, which currently measure about N60 billion (US$370 million), according to First Registrars. After enrolling, cardholders automatically receive dividend payments loaded onto the card. The funds then can be withdrawn at ATMs, transferred to a bank account or spent at 130,000 POS terminals and 1,000 Websites where Verve-branded cards are accepted in Nigeria. The card also can be loaded at First Registrars branch locations. A mobile version of the platform is coming soon, which will enable users to link their cards to mobile wallets. Visa and MasterCard-branded versions of the card are also in the works, according to First Registrars.
In January, Dubai’s stock exchange, Dubai Financial Market, launched its iVESTOR Shabab card, which targets students under 21 who are learning about the stock market. The card grants cardholders permanent DFM membership and permits them to trade independently when they reach 21. For those with parents who trade shares in their children’s names, any dividends can be paid directly onto their kids’ card, according to a report in 7DAYS Dubai.