Fledging mobile-payments company RegaloCard LLC announced May 26 a distribution agreement with IDT Corp. to place its card-based funds-transfer service in more than 150,000 retailers across the United States.
Miami-based RegaloCard’s service is designed to enable consumers to receive funds from the U.S. to use to pay for products and services at participating store locations in Central America. The IDT partnership now makes RegaloCard’s service available in more than 250,000 locations nationwide. RegaloCard also has a distribution deal with Fbrands (see story).
Under RegaloCard’s system, individuals wanting to send funds to someone in Central America must purchase a merchant’s prepaid card and scratch off an area on the back of it to reveal a PIN. The buyer then calls a toll-free number printed on the card and enters the PIN and the recipient’s mobile number. The recipient receives an instant text message that contains a redemption PIN.
To complete a transaction, the cashier at a participating retailer in Central America enters the recipient’s mobile-phone number into a dedicated terminal. The recipient then enters the redemption PIN to access the funds for the purchase.
RegaloCard’s distribution network previously was scattered across the U.S., and consumers could purchase cards only at locations that also sell prepaid phone cards, such as convenience stores in parts of New York, California and Nevada. The company’s expanded distribution network makes its products available in all 50 states, especially in cities such as Chicago, Houston and Miami that have large immigrant populations.
IDT, which distributes primarily prepaid calling cards, has a presence in mom-and-pop stores and in major national big-box retailers. “We sell millions of calling cards a month, and consumers and our retail partners have already been asking us when RegaloCard will be available in their area,” Tom Weekly, president of IDT retail, said in a press release. IDT was not available for comment.
RegaloCard says it soon plans to announce additional distribution partners in the U.S. and Canada.