1 / 24

Citi Prepaid Services

Citi Prepaid Services. An overview to delivering better, electronic payments. Agenda . Introduction to the Prepaid Industry Prepaid Solutions for State and Local Governments Key Benefits of Prepaid Solutions Case Studies Questions and Answers . Introduction to the Prepaid Industry.

salena
Download Presentation

Citi Prepaid Services

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Citi Prepaid Services An overview to delivering better, electronic payments

  2. Agenda • Introduction to the Prepaid Industry • Prepaid Solutions for State and Local Governments • Key Benefits of Prepaid Solutions • Case Studies • Questions and Answers

  3. Introduction to the Prepaid Industry

  4. Prepaid 101: Open and Closed Loop Programs • Closed Loop Prepaid Programs • Person-to-person gift cards • Merchant-specific acceptance • Non-bank issued Open Loop (Network Branded) Prepaid Programs • Corporate/government and gift card uses • Re-loadable and re-usable (configurable) • Issued by banks • Accepted on global payment networks (Visa ®, MasterCard ®, Discover ®, American Express ®)

  5. Prepaid Program Types 1 Visa preliminary estimate based on approximate segment sizes of demographic and industry spending and disbursements where prepaid products may provide payment solutions. Some segment dollar amounts may overlap. Version Q1 2003.

  6. The Prepaid Market • Network branded solutions had an overall increase of 82.8% in 2006 • Open Network Branded Prepaid, 2006 growth: • Payroll +79% • Employee & Partner Incentives +91% • Consumer Incentives +484% • Public Sector +1,000%* • *Mercator, September 2007 • **Mercator, March 2008 • ***MasterCard Europe and Boston Consulting Group, 2007

  7. Citi Prepaid Services • We provide organizations with electronic payment solutions that: • Replace paper check, cash and other inefficient payment • Extend communications to reinforce behaviors • 10 year history in industry (early entrant) • Prepaid clients include 45 of the Fortune100 • Have launched over 1,400 programs

  8. Prepaid Solutions for State and Local Governments

  9. Prepaid Solutions for States Replace existing check, voucher or cash payments with a more efficient, effective, secure and convenient prepaid program. • Payroll • Unemployment Insurance • Pension Payments • University Payments • Financial Aid & Payroll • Law enforcement • Juror, witness stipends • Worker’s Comp • Food Stamps & WIC • Child Support & TANF • Wellness Programs • Catastrophe/ Disaster recovery claims

  10. Key Prepaid Program Components • Custom-designed Visa®/MasterCard® prepaid card • Re-loadable and re-usable • Good everywhere Visa/MC debit cards are accepted • Plastic and virtual solutions • ATM or debit only cards • Payment Delivery Options • ACH (Direct Deposit) • Proprietary Bulk file • Individual Payments (Web-based tools) • Customer Support • IVR • Live Representatives • Website • Email

  11. Key Program Components Implementation Methodology • Speed to Market • Focus on Quality • Training and Education Reporting • Operational • Business Reports Infrastructure and Security • Redundancy • Scalability

  12. Key Benefits of Prepaid Solutions

  13. Benefits of Prepaid to Clients • Better Financials • Lower cost delivery • Improved Funds Management • Fraud Protection • Payment Reversals • Streamlined Operations • No lost stolen/stolen checks • Eliminate administration associated with checks/cash • Outsource payment fulfillment to full service provider • Powerful reporting, better auditing capabilities • Powerful Communications Tool • Comprehensive communication/notification package • Ongoing communication with recipients • Spending visibility

  14. Significant Financial Benefit • Example Client ROI for Paperless Payment Solution • 105,000 total employees on monthly pay cycle receiving a check Assumptions: • $1.00 cost per check/per pay period (105,000 X $1.00 x 52 = $5,460,000) • $ 0.10 cost per payment / employee • Potential of 90% cost reduction

  15. Benefits of Prepaid to Recipients • Greater convenience • No checks to deposit or cash • Universal Visa®/MasterCard acceptance • Worldwide ATM access • No lost or stolen checks • “Zero Liability” protection for lost and stolen cards Better communication and service • Detailed payment history online • 24/7/365 support (web, IVR, live reps) • Email/Text Message Alerts • Special Transfers Improved financial management • No need to carry cash • Online account management

  16. 9.0 27.1 44.8 131.4 282.3 541.3 Underserved Population in the US Approximately 80M “Underserved”… (Population in Millions) • 80 million consumers in the US without a traditional deposit account or with limited access to credit. • These consumers received almost $1 trillion in payments from employers, states, government entities, insurance companies and others • Over $1.5 billion in fees are paid to cash checks Underserved Consumers Unbanked (no banking relationship) Underbanked (low/ no credit score) Recent Immigrants ..with almost $1T in Income ($ Billions) Source: Study commissioned by Visa and performed by Bearing Point in 2004/2005

  17. Case Studies

  18. Case Study: State of Maryland • State of Maryland’s Need • Maryland currently delivers paper checks to recipients of unemployment benefits • Issuing paper checks involves significant costs, administrative overhead and risk • An electronic delivery method is ideal for the State • Citi’s Solution • Citi is providing a fully electronic solution to deliver and communicate unemployment benefits via our Prepaid Services platform. • Citi’s customizable solution eliminates the need to issue paper checks while providing beneficiaries with flexible access to funds and comprehensive customer support

  19. National Guard Case Study Client Objectives: • The National Guard’s goal was to drive a large scale recruitment campaign • The National Guard and its partner Docupak desired an effective incentive to motivate existing troops to refer and recommend new troops Citi’s Solution • Citi Prepaid Services provided our industry-leading Referral Program, featuring a fully customized prepaid debit card Results: • The program was so successful it was expanded to the Air National Guard

  20. Case Study: Stein Mart • Situation: • High fashion, off-price retailer with about 300 stores, coast-to-coast in 30 states, 18,000 active associates • Expensive and inefficient process of in-house printing and distribution of pay checks and paper pay stubs bi weekly • Ongoing delivery issues associated with uncontrollable forces over the past several years (9/11, hurricanes, strikes, etc.) • Less than 50% direct deposit adoption • Results: • Savings of approx. $100K annually • Eliminated checks within 2 weeks of rollout • 100% electronic paperless pay • Redeployed payroll resources to other areas • Significantly reduced payday disruptions

  21. Chicago Parks Case Study • Client Needs: • The Chicago Park District (CPD) is responsible for enhancing the quality of life throughout Chicago. • CPD wanted to decrease the payroll expense related to delivering checks and reduce the expense for employees to access their pay • Citi Prepaid Solution: • A customized Citi Prepaid Program helped the CPD significantly reduce employer costs associated with payroll expenses, as well as reduce banking expenses for the employee. • Results: • “From the start, we had confidence in Citi’s ability to implement the solution. Citi assured us that implementation and adoption of their payroll card program would be transparent – not only was Citi able to seamlessly work with our existing Oracle payroll system, the pay card implementation did not create additional or extensive work for the payroll manager or our employees.”

  22. Citi Prepaid Solutions: Healthcare • Replace premium discounts, checks, gift cards and direct deposit with a branded, powerful incentive • Perfect for: • Wellness Incentives • Disease Management • Weight Loss Programs • Smoking Cessation

  23. Case Study: Citi for You • Situation • Citi was looking to engage their workforce in Health Risk Assessments – online surveys developed to establish a health profile of each employee so programs can executed to help reduce healthcare premiums. • They needed a compelling and universal reward that was easy to manage. • Solution • Citi combined an online assessment with a fully branded prepaid program. The prepaid card was chosen because of it’s universal popularity and simple execution. • Results • Citi distributed the health survey to all domestic employees. With the prepaid incentive • Citi received nearly 125,000 completed surveys with participation 60% above forecast, and payments and communications delivery cost reduction of 10%. • .

  24. Questions • Thanks for your time Jason Tiede Citi Director, Global Prepaid Services Jason.Tiede@citi.com

More Related