BRADENTON, Fla., Feb. 5, 2007 (PRIME NEWSWIRE) -- nFinanSe Inc. (OTCBB:NFSE) today launched its new line of instant issue nFinanSe(tm) Discover(r) Network Reloadable General Spend Cards which will be sold at retail locations.
"In developing our new reloadable general spend card products, we reached the conclusion that the primary reason why reloadable general spend cards have not developed the same traction with consumers as gift cards is simple --- they are just priced too high. Association gift cards are generally priced at $3.95 - $5.95 while reloadable general spend cards retail for $9.95 - $14.95, almost three times the price of a gift card. Since reloadable general spend cards are targeted at certain, less affluent demographics, e.g. tweens, teens, college students, recent immigrants, guest workers and individuals with no bank accounts, prepaid card issuers have been asking the very people who can least afford it to pay exceptionally high fees. If this were not enough, most issuers are also asking cardholders to pay monthly maintenance fees of $4.95 - $6.95 or, in lieu of a monthly maintenance fee, a $1.00 transaction fee when they make a purchase. And then to add insult to injury, most issuers are also charging their cardholders for customer service when they call to ask questions about their card or when they check their balance. The existing pricing structure to the consumer is simply NUTS! It's no wonder reloadable general spend cards have failed to take off in the marketplace like gift cards," says Clare Morgan, nFinanSe's Vice President of Marketing.
According to Jerry Uffner, nFinanSe's Senior Vice President of Sales, "To go in a different direction from our industry on pricing and to accelerate demand among consumers, nFinanSe is introducing the 'Real Good Deal' Reloadable General Spend Cards. With the 'Real Good Deal' program, nFinanSe general spend products have the following features and benefits:
* $5.95 suggested retail price
* $2.95 monthly fee
* Instantly issued nFinanSe(tm) Discover(r) Network cards for
immediate use
* Free first load
* No hidden transaction fees or gimmicks
* No application fees or credit checks
* Stylish and trendsetting card designs
* Reloadable at 80,000 nFinanSe Network(tm) locations
* "Free ...of course!" Customer Service available 24/7
* For use everywhere Discover(r) Network cards are accepted
Mr. Uffner also said, "Cardholders can use their nFinanSe Prepaid Discover(r) Network Cards immediately; they don't have to wait 7-10 days for a branded card to arrive in the mail. Plus, our cardholders can add funds to their reloadable cards at over 80,000 nFinanSe Network locations across the country."
Ms. Morgan added, "After breaking the code on pricing, we then focused on providing stylish packaging and card designs, in both English and Spanish. By doing so, our packaging is visually appealing and stands out amongst the other products in the prepaid category. To assist us in this effort, we sought designs and input from some of the country's leading creative agencies. We believe cardholders will be proud to use these trendsetting reloadable general spend cards versus a non-descript card design."
"Finally," concluded Mr. Uffner, "we bundled our 'Real Good Deal' with our 'Free ...of course!' Customer Service, so our cardholders can access their account information 24 hours a day, 7 days a week at no charge. In fact, our cardholders can actually access a 'living, breathing person' with ease in order to help them with their questions. This is all part of our ongoing commitment to provide the most innovative prepaid products and services in the market, and to bring products to market which are demonstrably superior and pleasingly different. The bottom line is we believe we have a better product at a lower price than others in the market."
About nFinanSe Inc.
nFinanSe Inc. is an innovative financial services company and provider of stored value and prepaid card solutions headquartered in Bradenton, Florida. nFinanSe has developed the nFinanSe Network, a secure, reliable, point of sale (POS) and PC based software platform that connects retail merchants with multiple stored value prepaid card processors and issuing banks. nFinanSe owns and operates the nFinanSe Network as a standardized, national network of stored value and prepaid card cash load stations located throughout the United States.
"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements based on the Company's current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words and include statements regarding the strength of the Company's balance sheet and capital for growth. Forward-looking statements in this release are based on information available to the Company as of the date hereof. The Company's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with the Company's business, which include the Company's ability to execute its business strategy and the other risk factors disclosed in the Annual Report on Form 10-K for the year ended September 30, 2006 on file with the Securities and Exchange Commission. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.