In Person Payments (IPP) is searching for ISOs to represent their service. IPP provides services to "The Great Unbanked," a niche market estimated to be as high as 25% of the country. The reasons for lacking a banking relationship are many, including the decrease in the number of inner-city banks and the increase in bank fees. As we've previously reported, these Americans use alternative avenues for their banking needs, including check cashing centers, money orders, or convenience stores. IPP provides another way to service the unbanked population.
IPP contracts with merchants to process payments for a variety of entities, including utility companies and department stores. Being able to pay an electric bill at the grocery store is not a revolutionary idea, but IPP has taken it a step further: They make it possible to pay a variety of bills in one location. IPP is not looking for people to service or maintain accounts; they're seeking established, qualified ISOs to sell their service to retailers, such as pharmacies, food markets, travel agencies, and department stores. Additionally, IPP is making it possible to purchase cellular phones and provide pre-paid cellular, pre-paid home service, long-distance, debit/EFT transaction cards, and secured credit cards through their program. In the future, IPP plans to make it possible for someone without a credit card to order merchandise from specific catalogs by making payment at the IPP vendor.
The way the program works is that a merchant signs up with IPP and leases or purchases a PC to process transactions. If the merchant has a compatible PC they can use the one they already have. Then, the consumer goes to the merchant's store with bills from their electric, telephone, gas, and cable TV companies, as examples. The consumer gives the cashier the bills, and the cashier enters the information into the IPP computer, which prints a receipt for the consumer's records. The PC then dials IPP and transfers the payment information to IPP and IPP forwards the data to the appropriate biller. The payment is reflected on the consumer's billing statement. The consumer will also see that he has been charged $1 for each paymentówhich is cheaper than the $1.25 to $5.00 fee for a money order and stamp, or transportation to the billing location. Part of the fee goes to IPP and part of the fee goes to the merchant.
The utilities, department stores, and other billers save money because they do not have to staff as many offices to process payments, or incur costs for transactions taken on their behalf. Consumers benefit because they no longer have to buy money orders, stamps, or find transportation to the different billing offices. The merchant benefits from the commission payment and the increased foot traffic in their store; they also have an increased edge over the competition because they are able to offer a service which their competitors cannot. Finally, the ISO benefits from the initial store sign-up and the computer placement. By reaching certain performance goals, ISOs can attain residuals.
Currently, IPP has over 1,100 locations in the eastern U.S. and it isn't just utility bills that customers can pay at the IPP locations. Billers also include non-utilities such as Discover Card, JCPenney, Spiegel, Sprint, and Victoria's Secret. According to IPP, their processing volume is increasing at a rate of 7% a month, and the company has more aggressive plans for the future.
If this seems like an opportunity for you, visit their Web site at www.ipppays.com, or call them directly at (973) 696-5800, ext. 108.
