Altair Financial Services International
Plc and Vodatel have announced the formation of a joint venture – iPay
Holding – to provide prepaid and stored value card services globally with a
focus on the Middle East, Africa, Indian Subcontinent and Asia Pacific.
iPay Holding, which will formally begin trading in Q3 2007, seeks to take
advantage of the explosive growth in demand for prepaid card products in
these regions and to capitalize upon Altair’s leading edge technology. The
potential market size for prepaid cards is estimated at US$3 trillion
and the current value of global money remittance is thought to be in excess
of US$290 billion.
Prepaid cards are payment cards that have been preloaded with funds;
they can be used to make purchases and to access cash from ATMs at over 24
million locations world-wide, wherever MasterCard(R) or Visa is accepted.
Because the cards are preloaded they offer a secure and convenient
alternative to cash, without the danger of running into debt.
“iPay Holding will offer a portfolio of stored value Prepaid Card
programs to suit different types of customers including money transfer and
payroll solution for unbanked workers. Our research has indicated that the
money transfer and payroll programs are likely to be extremely successful
due to the industry leading features and functionality of the cards,”
reports Ghassan Oueida, CEO of iPay Holding. “There is definitely a market
for prepaid products that have convenience and value for money built in.
UAE, for example, has a population of 4.3 million with its expatriates
sending home US$5.4 billion annually. The Kingdom of Saudi Arabia is even
larger with Around US$14 billion being sent home. India, on the other hand,
is the Biggest beneficiary in the world receiving US$23 billion
annually.”(xxx)
Altair has recently launched an unparalleled addition to its prepaid
card services that makes use of an innovative mobile technology. A
principal product that immediately benefits from this new technology is its
successful MoneyShare(R) Card. It is a MasterCard(R) branded two-card
package that allows the instant and safe transmission of funds using SMS
instructions to move funds from a primary card to a secondary prepaid card.
“We have an eye on the wider global market and UAE represents the first
milestone for our launch,” declared Ghassan Oueida. “In a society where
expatriates account for almost 80%(++) of the community, the potential for
offering such an innovative money remittance solution is overwhelming. The
UAE market is in need of our products and we’re determined to establish
ourselves here as the first step towards our global launch.”
The Payroll Card is particularly attractive for businesses employing
high numbers of transitory staff on short term contracts who may arrive in
a country without any banking arrangements set up in advance. Using the
latest SMS technology or the Internet, wages can be loaded simply and
easily onto a corporately branded Prepaid MasterCard(R) that staff can use
immediately for all their personal requirements. MoneyShare(R) can be built
in to the card so that card holders can instantly and cheaply send money to
their families back home.
Lee Britton, CEO of Altair stated: “We are one of the first companies
in the world to offer such new technology – Altair Mobile Payment System
(AMPS) – to our clients in this region. But watch this space! The pace of
change in what we can achieve by linking telecommunications companies and
the financial services sector is accelerating rapidly. We are trialing yet
more new services and iPay Holding will continue to lead the way through
innovation.”
iPay Holding will have its headquarters in Dubai which will host its
global processing and call center facilities. Distribution partners are now
being appointed throughout GCC and the launch will be supported with an
aggressive marketing campaign.
(x) The Center for Financial Services Innovation (CFSI)
(xx) Visa Remittance Solutions Report
(xxx) International Association of Money Transfer Networks
http://iamtn.org/node/90
(++) Preliminary Results of the General Census for Population, 2005
United Arabic Emirates
About Altair Financial Services International Plc
Altair Financial Services International Plc was incorporated in 2005 as
a global provider of Prepaid Card solutions with enhanced functionality.
The company is headquartered in London with banking and processing
relationships in UK, USA, Asia Pacific and throughout the Latin America and
Caribbean regions and issues on behalf of MasterCard(R) and Visa. Altair’s
solutions are designed to be flexible enough to provide companies with
almost any type of prepaid card functionality, including open and closed
loop programs. Through its relationship with MasterCard(R) all Altair cards
issued in Europe are based on Chip & PIN technology and are EMV standards
compliant. For more information, visit http://www.altair-financial.com.
About Vodatel
Vodatel is a key player in the technologically advanced Saudi
telecommunications boom. Established in 1995, the company was gradually
awarded licenses to provide prepaid calling cards, Internet services and
satellite transmission. These licenses and major deals with large Saudi
companies like STC and Mobily have made the name VODATEL a key part of
national life in the Kingdom of Saudi Arabia.
