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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.

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citi prepaid services

Citi Prepaid Services

An overview to delivering better, electronic payments

  • Introduction to the Prepaid Industry
  • Prepaid Solutions for State and Local Governments
  • Key Benefits of Prepaid Solutions
  • Case Studies
  • Questions and Answers
prepaid 101 open and closed loop programs
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 ®)
prepaid program types
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.

the prepaid market
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
citi prepaid services1
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
prepaid solutions for states
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
key prepaid program components
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
key program components
Key Program Components

Implementation Methodology

  • Speed to Market
  • Focus on Quality
  • Training and Education


  • Operational
  • Business Reports

Infrastructure and Security

  • Redundancy
  • Scalability
benefits of prepaid to clients
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
significant financial benefit
Significant Financial Benefit
  • Example Client ROI for Paperless Payment Solution
    • 105,000 total employees on monthly pay cycle receiving a check


    • $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
benefits of prepaid to recipients
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
underserved population in the us







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




(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

case study state of maryland
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
national guard case study
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


  • The program was so successful it was expanded to the Air National Guard
case study stein mart
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
chicago parks case study
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.”
citi prepaid solutions healthcare
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
case study citi for you
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%.
  • .
  • Thanks for your time

Jason Tiede


Director, Global Prepaid Services