Mobile-payments firm RegaloCard LLC is bringing its card-based funds-transfer service to an additional 4,000 U.S. retail locations through a distribution agreement with iPayStation LLC, the companies announced Sept. 20.
Gardner, Mass.-based iPayStation offers a system that enables merchants to accept payments for utilities, sell long-distance phone cards and top up mobile minutes at the point of sale. Miami-based RegaloCard’s service is designed to enable consumers to receive funds from the U.S. and Canada to use to pay for products and services at participating store locations in Central America.
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 in June expanded its service to Canada in a distribution agreement with SelectCore Ltd., a large prepaid phone card provider that services 5,000 Canadian convenience stores and other retailers (see story).