Card News: Bancorp to Issue TFG Payroll; InComm Partners with Jackson Hewitt on GPR Card (Oct. 7, 2013)
GPR and payroll cards—two of the fastest-growing segments in prepaid—continue to expand as a new GPR program and a new payroll card partnership were unveiled today. In separate announcements, InComm and tax preparer Jackson Hewitt said they’re working together on a new GPR program, while The Bancorp Inc. said it will issue payroll cards to TFG Card Solutions’ 2,000 client employers.
InComm, a prepaid product and transaction services company, and Jackson Hewitt, will launch the JH Preferred Card in November, with a rewards component rolling out in January, Mark Colyer, director, product development, financial products, Jackson Hewitt, tells Paybefore. The GPR card will replace Jackson Hewitt’s current prepaid program, features low fees that make it competitive with other newer market entrants and eventually will be available in InComm retail partner locations, according to Colyer.
“We really like the flexibility of InComm’s platform and strong presence in the retail space, as well as the opportunity to launch a rewards program. We’re always looking for ways to increase the stickiness of the product,” explains Colyer, who notes that mobile remote deposit capture is also on the development road map.
JH Preferred, issued by Sutton Bank, enables consumers to direct deposit tax refunds, payroll and government benefits to their cards and load cash at more than 50,000 Vanilla Reload retail locations nationwide for a fee up to $3.95. JH Preferred also offers cardholders rewards, a mobile app and other money management tools. The $3 monthly fee is waived if cardholders load $1,000 in a month and ATM withdrawals are $2.50.
On the payroll card front, TFG, which has been offering payroll cards since 2004, has tapped The Bancorp as its new issuer. By December, all TFG payroll cards will be issued by The Bancorp. Tom Secor, president, TFG Card Solutions, said The Bancorp is uniquely positioned to offer premium features and support to TFG’s clients and cardholders and will help the company pursue its growth initiatives.
“We are excited to announce our relationship with TFG, a leader in the paycard space, at a time when consumer demand and adoption for this product continues to increase,” said Jeremy Kuiper, managing director of The Bancorp’s Payment Solutions group, which has experienced explosive growth in the past few years.
A recent Aite report estimates the annual growth rate for gross dollar volume (GDV) loaded onto GPR and payroll cards will approach 20 percent from 2010 to 2016. Aite expects GDV to increase to $168.7 billion from $56.6 billion during that period.