MarksPAYMASTER (JAMAICA) Limited has signed a non-binding memorandum of understanding with Equitex inc. to expand its services.
The two are to form a jointly owned and operated company to replicate the Paymaster Jamaica financial services business model throughout the Caribbean, North America, and, ultimately, worldwide, according to a recent company release.
"Utilising our existing assets and customer base in Jamaica," said Audrey Marks, managing director of Paymaster Jamaica, "we are confident we can enter the market immediately and have a significant impact."
The agreement also calls for Equitex, in conjunction with Paymaster Jamaica, to immediately develop, market and implement a stored value card program through the newly formed company. The initial focus of the program will be the international funds remittance business between the United States and Jamaica. In addition, Paymaster Jamaica may offer the stored value card on a worldwide basis, with initial roll-out to its present customers in Jamaica.
Once money is loaded onto a stored value card, customers have immediate access to their funds wherever the card is accepted, the company statement said. If a customer wishes to transfer funds to family or friends, either nationally or internationally, they may purchase a second card that is sent to the recipient, which may be used to access the transferred funds for a minimal fee.
REMITTANCES
Initially, Paymaster Jamaica, utilising the newly developed stored value card program, will target the cash remittance business for funds sent to Jamaica from abroad.
"The immediate goal of Paymaster Jamaica is to capture a portion of the international remittance business using the stored value card," Ms. Marks said in the company statement. "We believe we can offer the recipient of these transactions a faster, more secure means of transferring funds from abroad with significantly lower fees than those charged by the traditional remittance services."
According to recent statements before the United States Senate Committee on Banking, Housing, and Urban Affairs, total cash remittances sent to Jamaica, principally from the United States, the United Kingdom and Canada, equalled nearly US$1 billion in 2001, the company statement said. It was also reported that the average remittance cost on a US$200 transaction to Jamaica was in excess of US$20.
"The stored value card program is a way of banking the unbankable," stated Henry Fong, president of Equitex. "It is estimated that there are more than 80 million people in the United States alone that do not have a bank account, and the stored value card can provide these consumers access to the banking system."
"Utilising our existing assets and customer base in Jamaica," Ms. Marks said in the company statement, "we are confident we can enter the market immediately and have a significant impact."
The newly formed company, Paymaster Worldwide, Inc., will be owned equally by Equitex and Paymaster Jamaica. Completion of the contemplated transactions is subject to certain conditions, including further due diligence, the negotiation and execution of one or more definitive agreements and board of director approval, among others.
Started in 1997, Paymaster Jamaica presently has over 700,000 consumer clients accessing services at approximately 100 service outlets. The company does over 400,000 transactions per month with average collections of J$1 billion (US$20 million). In addition to its bill payment services, Paymaster Jamaica offers cash remittance services.
Equitex, Inc. is a holding company operating through its wholly owned subsidiaries Nova Financial Systems and Key Financial Systems of Clearwater, Florida, and Chex Services of Minnetonka, Minnesota. Nova and Key design, market and service credit card products. Chex Services provides cash access services to casinos and other gaming facilities.
