American Banker today published an article indicating PreCash will launch FlipMoney, a mobile wallet service connected to a prepaid account for the unbanked and underserved.
“Current mobile check solutions can take up to six days before somebody gets their money — that does not work for someone living from paycheck to paycheck,” says Steve Taylor, PreCash’s CEO. “They need their money immediately.”
Flip will offer instant mobile check deposit and instant bill payment — features that matter a lot more to the underbanked than to the banked. People who live paycheck-to-paycheck need to obtain the funds from their paychecks and then transfer those funds to their billers right away, Taylor says.
Mercator Advisory Group has written about the impact prepaid mobile check deposit will have on the growth and direction of the prepaid market. We addressed most recently in a Research Note titled “Mobile Deposit Capture Will Greatly Expand the Prepaid Market” and in the March report “Grasping the Benefits of Prepaid: A Battle Plan for Banks.”
The American Banker article also identifies the cost model that PreCash will implement:
For instant check deposits, PreCash plans to charge $1 plus 1% of the deposit amount for a payroll or government check and $1 plus 3% of the amount for personal checks. There is also a standard-speed option for a flat $3 fee per item. PreCash does not plan to charge for expedited bill-payment.
This type of app is a first in what will soon become a standard offering for most Prepaid Financial Services products and the time to market this service, as well as channel partner development, will prove important.
Click here to read more from American Banker.