FORT WAYNE, Ind., Nov. 10, 2010 (GLOBE NEWSWIRE) -- Advanced Content Services, Inc's (Pink Sheets:ADCS) MTP Ventures announces that ServeNation, inc. (), its charitable prepaid reloadable debit concept, will engage in the ever-growing prepaid payroll market.
ServeNation CEO, Jasmine Raja and MTP Ventures CEO, Mark B. Newbauer have discussed viability with ServeNation's prospective Issuer and Network toward additional program/card features under their General Purpose Reloadable debit program with satisfactory results. One of the major marketing strategies ServeNation will employ is fostering the use of the SN card for corporate payroll solutions.
Raja comments, "The process of issuing paper checks costs employers between $1 and $2 per pay period. Payroll card transfer of payroll funds costs employers only about 20 cents per employee. Further, payroll cards benefit the underbanked in a way like no other. The savings here is substantial. Take the industry-standard employee adoption rate of about 70 percent and assume payroll to be done bi-weekly even, a business with 300 employees could save almost $10,000 per year; not to mention the fact that a portion of fees would go to a worthy cause as chosen by the corporation or even each individual employee. This is a sticky factor that does not currently exist in the market and it greatly expands our capabilities toward market reach and overall growth and revenues."
According to a recent study by Aite Group, the uptake of prepaid in the US is set to rise significantly this year, driven by increased marketing and awareness, and a rapid rate of deployment in the government and payroll sectors.
The new report finds that Americans will load $69 billion onto branded prepaid cards in 2010, up 27% from 2009 levels. Increased consumer marketing and the US government's push to move federal and state disbursement programs to prepaid cards are predicted to propel the industry forward. Transaction volume will reach $3.3 billion this year, up 37.5% from 2009, and $3.9 billion in 2011, eventually reaching $6 billion in transactions in 2014.
By 2014, US payment consultancy Aite Group predicts consumers and businesses will load as much as $186 billion onto prepaid cards, according to the report, The Branded Prepaid Card Market in 2010 and Beyond.
Payroll cards will experience 28% growth through to 2014, the report said, as prepaid program managers (such as ServeNation), networks and issuers continue to highlight the benefits of payroll cards to corporations. Wal-Mart's recent decision to pay employees using payroll cards brought a great deal of attention to the sector.
ServeNation, by request, has recently submitted materials to major Issuer, Processor and Network Providers for review and discussion and is confident that materials will be reviewed favorably toward expedited product launch.
ADCS MTP Ventures acquires, creates, co-ventures and/or incubates powerful, unique business models and Intellectual Property. The firm was initially formed to develop new ideas and IP, as well as to acquire distressed companies in need of a 'business makeover', and transform them into thriving entities with sustainable revenue and progressive growth.
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PR prepared by NMR
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