MasterCard International and Providian Financial Corporation announced that Providian will participate in MasterCard’s Remote Payment and Presentment Service to receive payments electronically from its credit counseling agency customers.
MasterCard’s RPPS program provides participating credit counseling agencies with flexible connectivity to replace paper-based payments with a value-added electronic process that offers same-day posting and funds settlement. Through the new agreement, MasterCard will act as a payments “hub,” offering Providian the ability to receive payments from the hundreds of credit counseling agencies currently connected through MasterCard’s RPPS network.
MasterCard is the leading provider of electronic payments and electronic debt management proposals (DMPs) to the credit counseling industry. Credit counseling agencies provide services to enable consumers to pay down debt and avoid bankruptcy. MasterCard’s 14 years of experience, along with its proven payments network, risk management and customer service infrastructure, will enable Providian to leverage MasterCard’s expertise, connectivity and payments capability.
“MasterCard’s RPPS network allows Providian to replace a costly, labor-intensive payment system with a sleek and fast way to automate our customers’ payments,” said Shailesh Mehta, chairman and chief executive officer of Providian Financial Corporation.
“Providian’s long standing relationship with MasterCard has now expanded to include receiving electronic payments from credit counseling agencies,” said Ruth Ann Marshall, president, North American Region, MasterCard International. “This latest agreement between MasterCard and Providian gives us the largest reach in the credit counseling industry.”
KUBRA, the leader in the capture, management and distribution of paper-based and electronic documents, also announced it has entered into an agreement enabling KUBRA to access MasterCard’s Remote Payment and Presentment Service on behalf of its biller customers.
KUBRA is the first Canadian company to sign-up for the bill presentment service. This agreement will add further value to KUBRA distribution network and provide KUBRA’s customers with access to another primary distribution channel.
The MasterCard RPPS program provides participating financial institutions flexible connectivity to process transactions without capturing or storing consumer or biller relationship information. With the agreement in place, MasterCard will act as a bill presentment and payment distribution network, offering KUBRA’s customers the ability to present bills to customers through MasterCard’s network.
KUBRA is an EBPP service bureau that provides issuers of bills and statements with a turnkey bill presentment and payment solution, allowing billers to offer EBP services without having to develop or purchase software, or make costly investments in their technology infrastructure. KUBRA provides a single-point solution that requires no change of technology for its customers. Companies continue to generate the same data stream they use today for printed bills and statements, which they provide to KUBRA for processing and electronic delivery.
By leveraging MasterCard’s existing payment relationships through its Remote Payment and Presentment Service (RPPS), this collaborative effort allows the payments industry to reach a greater number of potential consumers than ever before. MasterCard’s 14 years of experience, along with its proven payments network, risk management and customer service infrastructure, enable companies like KUBRA to leverage MasterCard’s expertise, customer base and market knowledge. The full service offering is expected to be available to all banks, Customer Service Providers and Biller Service Providers in September 2000.
“We’re very excited to join forces with KUBRA and extend both of our payment and presentment networks,” said Ruth Ann Marshall, president, North American Region, MasterCard International. “Relationships such as this extend our leadership in the electronic bill payment and presentment marketplace and make us the best choice for members who want to manage their accounts online.”
“Our agreement with MasterCard furthers KUBRA’s biller-centric strategy of providing our customers with the widest selection of distribution channels on which to present bills and statements,” said Rick Watkin President and COO of KUBRA. “MasterCard is a global leader in electronic payment and presentment solutions and as such represents a key distribution channel going forward. This relationship further strengthens our core strategic value proposition providing billers a single point of access and the subsequent management of a wide selection of front-end locations.”
MasterCard International has the most comprehensive portfolio of payment brands in the world. More than 1 billion MasterCard(R), Cirrus(R) and Maestro(R) logos are present on credit, charge and debit cards in circulation today. An association comprised of 22,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is the leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. With more than 18 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 1999, gross dollar volume exceeded US$727 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com].
About Providian Financial Corporation
San Francisco-based Providian Financial Corporation ([www.providian.com]) is a leading provider of lending and deposit products to customers throughout the United States and offers credit cards in the United Kingdom. The sixth largest bankcard issuer in the U.S., Providian was recently named one of America’s Most Admired Companies by Fortune Magazine. Providian serves a broad, diverse market with loan products that include credit cards, secured cards and membership products. With a commitment to 100% customer satisfaction, Providian’s mission is to help customers build or rebuild, protect and responsibly use credit by providing a quality borrowing experience that leads to active and long-lasting customer relationships. Providian has more than $27 billion in assets under management and over 13 million customers.