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Table of Contents

Lead Story

Reload with prepaid


Industry Update

Cynergy acquired by ComVest

A certified alternative

Dueling Strategies: VeriFone-Chase, Heartland-Hypercom

Optimism prevails at WSAA


Special report on the ETA's 2009 Strategic Leadership Forum

Brandes Elitch
CrossCheck Inc.

Wal-Mart and the unbanked

Patti Murphy
The Takoma Group

Glossary of common payments industry terms

Research Rundown

Selling Prepaid

Prepaid in brief

Prepaid players expand to meet demand

From coins to customers

In-house, SaaS or PaaS that solution?


Sell, rent, lease or give it away - what to do?

Biff Matthews
CardWare International

Use security to retain merchants

Scott Henry


Street SmartsSM:
Why do we think we're different?

Jon Perry and Vanessa Lang

Start with ripples, not waves

Jeff Fortney
Clearent LLC

Legal aspects of high-risk processing

Adam Atlas
Attorney at Law

Digging into PCI - Part 4:
Encrypt transmission of cardholder data across open, public networks

Tim Cranny
Panoptic Security Inc.

Company Profile

Merchant e-Solutions Inc.

New Products

Consolidated purchasing for truckers

Smart Solutions
Comdata Corp.

A gateway into e-commerce

Brick and Click
First Data Corp., Yahoo! Inc.


Twenty tips for lifelong learning



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

November 09, 2009  •  Issue 09:11:01

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From coins to customers

A growing consumer group for prepaid cards consist of teens. By virtue of their age, teens have no access to personal bank accounts. That's where prepaid cards come in, giving teens the means to purchase goods and services electronically, whether in-store or online.

One popular pursuit of teens is playing "massively multiplayer online role-playing games" (MMORPGs), such as World of Warcraft and Everquest. Teens buy prepaid game cards to pay for game-time minutes or to outfit their online alter egos with powerful weapons or other accoutrements.

Mercator Advisory Group considers the market for digital media (of which game cards are a part) to be one of the fastest growing prepaid card segments. Mercator predicts the load volume in the digital media category will reach nearly $9 billion by 2011.

Coin of the realm

Recognizing the size of the teen market, coin exchange kiosk operator Coinstar Inc. partnered with alternative payment platform provider Rixty Inc. to offer its kiosks as a distribution channel for Rixty's services.

With Rixty game cards or online redemption codes, users go to Rixty's online platform to choose from one of Rixty's 43 MMORPGs, like Dragonica Online and Luminary: Rise of the GoonZu. The partnership with Coinstar allows teens to convert cash and change for receipts on which Rixty redemption codes are printed.

According to Mike Skinner, President of Coin and EPay at Coinstar, the partnership is one step in the Bellevue, Wash., company's continued expansion. "Through the Coin to Card program, Coinstar strives to offer retail cards and certificates that are attractive to multiple audiences," he said.

Skinner noted that the teen audience is increasing its consumption of online entertainment; the Coinstar-Rixty partnership provides teens with another access point to it. Coinstar estimates that $10 billion in loose change is sitting idle in households across the United States, which averages out to more than $90 per household.

Skinner said Coinstar has self-service kiosks in 18,000 locations nationwide and expects to install 800 to 1,000 new kiosks in 2009. Coinstar kiosk users can also exchange cash and coins for gift cards or electronic certificates for retailers such as Inc., Starbucks Coffee Co., JCPenney Co. Inc. and Lowe's Companies Inc.

Winning coin

Skinner said Coinstar has been successful because it offers consumers a convenient way to dispense with leftover change and control over what they purchase through the service. The most successful kiosk deployments occur in high-traffic retail locations, such as supermarkets, big-box retailers and drug stores - places that consumers normally frequent, Skinner added. Positioning within stores is another important factor in successful deployments; kiosks must be easily seen and accessible, he said.

But one size does not fit all. Coinstar allows its retail partners to vary what brands are represented in the kiosks. Additionally, the number of features on a kiosk needs to be taken into account, Skinner noted.

"However, multiple services on a kiosk does not necessarily translate to longer lines, more waiting," he said. "A kiosk could be multifunctional, but not every consumer will use all of the offerings/functionality on the kiosk."

For more stories from SellingPrepaid E-Magazine, as well as breaking news and forums devoted to the prepaid sphere, please visit

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Simpay | USAePay | Impact Paysystems | Board Studios