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NAVIGATION
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Get Ready for the Prepaid Evolution
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| Americans are using prepaid services more than ever before. And the biggest growth is still to take place as retailers introduce new card-based products and services that open the market to the unbanked population.
The unbanked population is estimated to be approximately 13 percent of American households. Traditionally this group pays in person, in cash.
Why are there so many individuals without bank accounts? The Federal Reserve Board�s Survey of Consumer Finances found that most individuals without bank accounts say they either do not write enough checks to make it worthwhile, they do not have enough money or do not like dealing with banks. |
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Affordable options for low-volume mobile minutes users
NOP World recently surveyed 1,000 wireless customers by phone. It also studied the wireless bills of 200 of these respondents. You know what they found? The average wireless customer leaves 50% of their minutes unused, while paying 34% more than they anticipated spending. What’s the solution to this disturbing dilemma, you ask? Why, prepaid, of course! |
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Save Lots of Money - Use Prepaid Solutions
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Prepaid Industry Profiled
Boston, MA, February 7, 2002 (The Digest) - ATLANTIC-ACM released its seventh annual study of the U.S. prepaid industry Prepaid Industry Market Sizing and Forecasts 2002-2006, demonstrating growth in different products within the prepaid industry. The continued expansion in the prepaid sector can be attributed to the increasing number of users of prepaid cards, as well as the increase in the various types of prepaid services offered by providers.
"We have seen and will continue to see growth in new products in the prepaid industry, particularly in prepaid wireless services" stated Dr. Judy Reed Smith, CEO of ATLANTIC-ACM. "We've seen the industry develop from primarily prepaid long distance calling cards to a mixture of multiple services including prepaid wireless, prepaid local dial tone and prepaid Internet access," she added. Prepaid wireless revenues are anticipated to increase from just under $3 billion in 2001 to $9 billion by the end of 2006, according to a study by Atlantic-ACM in Boston.
Competition in the prepaid industry is fierce, resulting in providers scrambling to find new and unique ways to attract consumers. Prepaid Internet access, prepaid local dial tone, virtual cards and prepaid wireless offer extended services, where sweepstakes, scratch tickets, give-aways, and private label cards serve as promotions. "As more consumers become aware of, and comfortable with, prepaid services they will accept them as a viable means of communication" stated Imke Louis-Mensah, Prepaid Analyst for ATLANTIC-ACM and recipient of InteleCards Editors' Choice Award for 2001. |
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Prepaid Mastercards & Visas
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| Prepaid Debit Cards are an excellent way to avoid credit card debt whilst enjoying the benefits of credit.
Prepaid Debit Cards do not carry the risk of acquiring unwelcome debt. They are suitable for the person who understands the risks of taking on debt and who wants to ensure that everything they purchase has been paid for in advance.
Prepaid Debit Cards allow a certain amount of independence without any risk of spending more than has already been credited to the account. They can also be used as a gift for friends or family. For those who like to live their lives completely free of debt, a prepaid credit card enables them to shop freely in the knowledge that the items purchased have already been earned and paid for. |
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No Credit Checks & No Contracts !
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| Balancing Act
U.S. carriers need to weigh the issues of cost, churn and handsets
by: Paul Waadevig
Prepaid wireless services have soundly taken the lead as the market platform for prepaid voice services. In the United States, this has significantly impacted a key market segment in the prepaid calling card market: transient domestic calling. This refers to the use of a calling card to make domestic long distance calls from a phone booth or other location. This trend has relegated the prepaid card calling market to compete on price and made international card calling the leading driver in that market.
As many longtime Intele-CardNews readers are aware, prepaid wireless services were initially marketed to those who were credit-challenged or those with such poor credit that they would not qualify for postpaid wireless services. However, over time this has changed as both individuals and companies have discovered prepaid wireless service can have certain advantages. These include low periodic prices for cost containment and relatively simple plans.
Carriers and service providers have also started paying closer attention to the prepaid wireless service offerings as the postpaid wireless market becomes increasingly saturated. They are looking to both increase and diversify their revenue streams, and prepaid wireless services can help them do so. Some carriers even look toward prepaid wireless service as a way to introduce their customers to their postpaid offerings; that is, once a customer becomes familiar with the service or has had a chance to run up a large bill, he may opt for the carrier's postpaid offering.
While the prepaid wireless market is expected to continue to grow at a significant rate, there are several challenges that service providers must address to be a winner in this market. At this point, the main competition for prepaid wireless services is not other prepaid voice services but postpaid services that have lower credit and contractual requirements. Following are some of the specific challenges that today's prepaid wireless providers must address.
Demonstrating value
Prepaid wireless service plans carry a high price per minute when they are compared with the usual postpaid wireless plans. While in some cases it is desirable to show a high price per minute in order to upsell or migrate customers to postpaid plans, in other cases it only leads to increased churn rates and lower growth.
The challenge is in justifying to customers why the rate is so high and how it is worthwhile to stay with the service. Emphasizing the other benefits and features that the prepaid wireless service provides could possibly do this. In some cases there would be a need to properly segment the market in order to properly tailor the services that are of the highest value to each segment. Presenting valued services can lead to satisfaction and loyalty, offering subscribers a reason to stay with the service provider and, thereby, reducing churn rates.
Prepaid wireless forecast — sub |
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Affordable Health Care Plans
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