By Al Edwards, Financial EditorGUARDIAN GROUP, headed by Kenny Benjamin, has expressed an interest in acquiring an equity stake in local bill payment company Paymaster, which is run by Audrey Marks, The Financial Gleaner understands.
Paymaster, founded in 1997, has gained a reputation as one of the leading bill payment companies in Jamaica. It now has over 40 client companies and over 750,000 customers with 132 outlets. At the end of last year it signed a contract with the United States Embassy to be the sole agency authorised to collect U.S. Embassy visa application fees. It is also the sole agency where users of the Highway 2000 toll road can go to top up TAG credits, making it more convenient to use the facility.
Last year Paymaster entered into a deal with U.S. company Equitex to market and implement a multi-purpose store value card. The card, to be called Paymaster Plus, will allow for utility bill payments, cash advances, long distance calls, retail purchases and eventually remittance payments to be made all on the one card. The new card will serve as a customer data storage facility which will provide on time bill payment. Users will also be able to transfer funds between cards and gain access to account on-line or via an 800 number. According to industry sources Paymaster received US$500,000 from this deal.
Paymaster will be looking to capture a portion of the international remittance business using the stored-value card. The remittance business in Jamaica is believed to be valued at some US$1.4 billion and the average remittance cost on a US$200 transaction to Jamaica is US$20.
COMMITTED EQUITY FUNDING
Last year Paymaster brought in ITC from the United States to install both the hard and software needed for this revolutionary card. ITC Financial Services (ITCFS) has received a total of US$54 million in committed equity funding.
It is a start-up financial services company focused on the unbanked, teen and immigrant markets.
The CEO of ITCFS, Cam Lenier III, said through a release issued earlier this year, "We are departing from our traditional telecom and internet focus as we start this company. Our focus will be on the fast growing stored value debit card marketplace with products that are designed to serve unbanked and underbanked people."
Guardsman is one of the country's leading security firms. Established some 25 years ago it has gone from strength to strength. The security industry in Jamaica has 15,000 security guards with Guardsman having 3,600 of those. It recently expanded its operations to St. Vincent. Closer to home Kenny Benjamin has taken over the operations of the Hilton's gym, turning it into a state-of-the-art fitness centre called Gym Karna.
Speaking of his interest in Paymaster, Mr. Benjamin told The Financial Gleaner: "Audrey Marks is a dynamic lady and has turned Paymaster into a very successful business. It fits very well into our business portfolio and with us providing security for many financial institutions there are opportunities there for us. We would look to acquire an equity stake but it is still early days. Ms. Marks is yet to indicate what she wants to do and I'm sure she has other suitors."
Yesterday an analyst said: "There is talk that Paymaster is looking to go public although I can't see that happening in the immediate future. What makes Paymaster an interesting proposition is its 132 outlets plus its data base. At this point in time I would have thought that it will be looking to upgrade its technology and launch its new all purpose card."
