Cachet, Rebar and Central Bank of Kansas City bring mobile prepaid programmes to community banks
Cachet Financial Solutions is working with Central Bank of Kansas City (CBKC) to bring mobile-optimised prepaid programmes to community banks, reports Paybefore (Banking Technology’s sister publication).
The two companies have also teamed with Rebar Interactive to provide Select Mobile Money-Express, a platform that includes a Mastercard-branded prepaid card.
Rebar, which develops and manages web-based applications, properties and consumer services for finance, education and insurance markets, says Select Mobile Money-Express will leverage the company’s “existing cross-selling and direct marketing reach, which includes a large consumer audience applying for online, single pay and installment loans, as well as prepaid cards”.
The reloadable prepaid card, which is issued by Central Payments, a division of CBKC, is key to Select Mobile Money-Express, the companies say.
“While there are many competitive prepaid programs in the marketplace, the practicality for organisations like Rebar are typically limited by low card usage and high abandonment,” comments Jeffrey Mack, president and CEO of Cachet. “However, our platform changes that dynamic by linking the prepaid card to a robust mobile environment, thereby creating stickier customer relationships and extending the life of the card.”
Nearly 10% of US households use prepaid cards, according to the Federal Deposit Insurance Corporation (FDIC).
“Our programme with Rebar expands the reach of our prepaid programme to both mobile-savvy customers as well as the more than 40 million underserved consumers using alternative financial products,” says Trent Sorbe, president of Central Payments.
The partnership comes on the heels of Cachet’s recent public offering, in which it expected to raise more than $9 million.