Jump into prepaid

If you're not selling a prepaid card program, now might be the time to ask why. In the 1008B edition of SellingPrepaid E-Magazine, Barry J. Kessler, CEO and President of Prepaid Resources Inc., offers an insider's view of opportunities in the industry.

Speaking of opportunities, Plastic Jungle Inc. seized on a rather large one with the secondary gift card market. Plastic Jungle's goal is to liberate money trapped on unused gift cards. Maybe Plastic Jungle's story can inspire you to find your niche in the growing prepaid card sector.

Getting started in prepaid

Reloadable, open-loop, network-branded prepaid cards are big business, as evidenced by the July 21, 2010, initial public offering of Green Dot Corp., which raised approximately $164 million in its first day of trading.

With the success of Green Dot and others, stakeholders in the merchant channel are taking increased notice of opportunities in prepaid – from selling cards to customizing programs. These opportunities can take many forms, each with varying levels of investment, product control and economic return, and the decision process can be daunting.

Here is a primer to help you develop a strategic plan, establish the requisite relationships and execute your plan for maximum benefit.

Prepaid profile: Plastic Jungle Inc.

King of the 'plastic' jungle

Depending upon the research, the secondary closed-loop, private-label gift card market is somewhere between a $30 to $50 billion market annually. As the name suggests, the secondary market complements the primary market, where gift cards are initially issued and sold. The secondary market is therefore where unused, discarded or disregarded gift cards get a second life.

Prepaid in brief

A concise, up to the minute update on what is happening in the prepaid world.