Domestic users of SolidTrust Pay Ltd.’s funds-transfer scheme have few options for accessing and using their account funds. Essentially it’s limited to email exchanges.
But that soon may change. The company recently signed an agreement that it says will lead to the rollout of a cobranded prepaid card for SolidTrust Pay participants in the second quarter of this year.
Under the deal, announced Jan. 23, San Francisco-based Tyburn Group Inc. will manage the card program, and San Diego-based Global Payout Inc. will manage the due diligence, card design and card-program approval in conjunction with Tyburn and the card’s issuer, the companies said in a press release.
First California Bank will issue the SolidTrust Pay General Spend Debit card, and Fidelity Information Systems, or FIS, will process the card transactions, Bill Rochfort, Global Payout executive vice president of sales and marketing, informed PaymentsSource via an email. The card will carry the MasterCard, Maestro and Star network brands for point-of-sale and ATM access, he said.
SolidTrust Pay was designed so that anyone with an email account may send or receive funds, according to the company’s website. The company does not charge customers to open an account or to send funds transfers, and it charges no monthly maintenance fees. Recipients of personal-account transfers pay 1.4% of the total sent plus 25 cents.
Once launched, the card will enable U.S. participants to transfer funds from their electronic SolidTrust Pay accounts directly onto their card accounts. This will allow SolidTrust Pay accountholders to receive their funds instantly and let them access cash at ATMs and use their funds at the point of sale, the companies said.
The prepaid card “will provide all the advantages of a cobranded prepaid card [program] both for accessing and using their funds,” Rochfort said. In addition, if users do not want to use their bank account or they don’t have one, or they do not have a credit card or do not want to pay for an electronic wire transfer, “then this becomes the option of choice,” he added.
The companies expect to earn monthly transaction revenue from active prepaid debit cards marketed and distributed by SolidTrust Pay starting in the second quarter. SolidTrust Pay anticipates 10,000 active cards within the first 12 months, 18,000 active cards within 24 months and 25,000 active cards with 36 months, according to the release.
The cardholder fees are in the last stage of review and will be released closer to the product’s launch, Rochfort said.
Ontario, Canada-based SolidTrust Pay offers individuals and business merchant-processing services, funds transfer, and online purchasing capabilities for both domestic and international purposes, Rochfort said. Since its inception five years ago, SolidTrust Pay’s account base has grown to 250,000 users worldwide, and 42% of the accounts are U.S. residents, according to the release.
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