Mobile-payments firm RegaloCard LLC is bringing its card-based funds-transfer service to Canada. The Miami-based company announced June 14 a distribution agreement with SelectCore Ltd., a large prepaid phone card provider that services 5,000 Canadian convenience stores and other retailers.
Toronto-based SelectCore also services 4,000 U.S. locations in Florida, New York and Texas, according to Ryan Deslippe, the company’s president. SelectCore plans to expand its distribution network to 10,000 U.S. locations by the end of 2010.
SelectCore agreed to distribute RegaloCard’s product because its network of retailers do not offer funds-transfer services, Deslippe tells PaymentsSource. “RegaloCard appeals to the same kind of consumers (immigrants and the underbanked) that we provide services for,” he adds.
Before the agreement, RegaloCard’s service catered to U.S. consumers wanting to send funds to individuals in Central America. SelectCore is partnering with RegaloCard now because RegaloCard plans to expand to areas such as Africa and the Middle East. “We have Canadian consumers with families spread out across the world,” Deslippe says.
To use RegaloCard’s service, the buyer 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-phone number. The recipient receives an instant text message that contains a redemption PIN.
To complete a transaction, the cashier at a participating retailer in the destination country 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 is free for the consumer. The company receives a percentage of the funds loaded onto the cards for each participating retailer. “If we don’t sell any cards, they don’t have to pay us anything,” Gregory Keough, chairman and CEO of RegaloCard, told PaymentsSource in January.
SelectCore could not provide a list of participating retailers, but the types of merchants will be similar to those found in Central America, which include restaurant chains such as Chili’s Grill & Bar and independent pharmacies, Deslippe says.
Last month, RegaloCard inked a distribution agreement with IDT Corp. to place its service in more than 150,000 U.S. retailers nationwide, mostly convenience stores (see story).
RegaloCard officials were unavailable for comment.