Meta Payment Systems has signed agreements with Fiserv Inc. and TransUnion LLC that will enable it to expand its iAdvance short-term loans. Meta Payment began offering small loans to holders of its prepaid cards in February (CardLine 2/26). Fiserv will provide software to help Meta Payment manage the accounts, and TransUnion will provide data about customers to help MetaBank, the lender, make better credit decisions, says Trent Sorbe, Meta Payment senior vice president of credit. Based in Sioux Falls, S.D., Meta Payment is a division of MetaBank, which is based in Storm Lake, Iowa. The terms of the iAdvance loans call for deducting repayment automatically from cardholders' prepaid cards on the dates of their next automatic deposit. Cardholders must repay their loans within 35 days. The agreements with Fiserv and TransUnion enable Meta Payment to extend the terms of repayment over several pay periods and offer lower fees for the loans because of better risk and account management, Sorbe says. The company plans to launch the product in the fall. Borrowers pay a $2.50 fee for each $20 they borrow, according to the terms and conditions.
The new system will provide a way for consumers to build a repayment history that leads to lower credit costs, Sorbe says. Fiserv is based in Brookfield, Wis., and TransUnion is based in Chicago.