Tuxedo and International Foreign Exchange team on pre-paid card - 9 November 2009

finextra.com

Tuxedo Money Solutions, the UK's leading prepaid card service provider and International Foreign Exchange (IFX), have joined forces to offer unique prepaid card to customers who travel frequently and who make regular payments abroad.

When abroad, travellers frequently pay much more for their currency than they need to - suffering from inflated exchange rates and misleading 'no commission' offers, as well as much higher merchant and ATM charges abroad. Now by using the unique Tuxedo Money Solutions eccount technology, IFX are able to give their customers significant savings over other cards usually used when abroad, either on business or holiday, as well as up to 70% savings on overseas bank charges.

The IFX MasterCard Prepaid Currency Card offers a number of key benefits over other cards - currency can be purchased at the guaranteed best exchange rates at any one time. You can manage and control your money abroad by SMS, online, or using the Tuxedo Mobile instant real-time transfer from your eccount and onto your card, wherever you are worldwide.

The currency card offers extra security and convenience, with the ability to instantly block or unblock your card should it be lost or stolen. You can store currency off your card and transfer over instantly when required.

Loading the card is very simple, and you can use your card anywhere MasterCard is accepted - over 28 million locations worldwide, online, on the phone and at over 1.5 million ATMs.

The IFX MasterCard Prepaid Currency Card has been developed specifically to give business and leisure travellers more flexibility and control over their currency needs - and can be purchased in either US Dollar or Euro currency.

The partnership between Tuxedo and IFX signifies the growing interest in prepaid cards as consumers look to a more convenient method of making regular payments abroad and a more cost-effective way when exchanging currencies. Prepaid cards are a safer alternative to cash and bank and credit cards when travelling, and far less hassle than using travellers cheques.

Ian Hossack (Head of UK Sales, Tuxedo Money Solutions) commented: "We are delighted to partner with IFX for the provision of the currency card product for their clients. The IFX prepaid MasterCard will provide a secure, competitive, hassle free card when transacting abroad. We look forward building a long-term successful partnership".

Nick Williams (Managing Director, International Foreign Exchange) commented: "IFX feel they have found the ideal partner in Tuxedo to revolutionize the way in which consumers buy their currency. This product will not only allow millions of travellers access to foreign currency rates normally only available to large companies but will also negate the risks associated with carrying large amounts of cash abroad."

 

 

Phones 4u enters financial services with top-up debit cards - 6 August 2009

Mobile Magazine

Former 4u airtime chief heads up business challenging Western Union

Phones 4u has launched two pay as you go debit cards, one aimed at the ethnic market and the other at teenagers.

The products form a bid to create a financial services business to support Phones 4u’s core retail operation.

Store managers were briefed on the cards last week, which work by topping up credit to allow users to spend money.

It is being launched in partnership with Mastercard and is aimed at providing cards to consumers with no, or poor, credit histories, particularly migrant workers and teens.

The business is led by former head of 4u airtime (part of John Caudwell’s distribution business) Paul Smith, after it was set up at the start of 2009 by Smith, Phones 4u CEO Tim Whiting and COO Phil Dobson.

One card, called ‘Escape’, will be pitched to migrant workers by offering no fee to transfer money across the world.

The retailer told its store managers it was challenging the dominant force in the money transfer business, Western Union. Staff will get commissions similar to those from high-end pay as you go sales.

Smith (pictured) told Mobile: ‘Migrant workers will be able to load money on the Escape card and transfer money to 28 million locations in the world, or use it in 1.5 million ATMs.’

The card aimed at teenagers is called ‘Neon’. Phones 4u has secured approval from the Financial Services Authority on its suitability for children aged between 13 and 17. Teenagers can sign up, but it will have to be sanctioned by parents online.

A separate company has been created to head up this new business, called Easy Pay Limited. It is a subsidiary of Phones 4u’s parent company, MobileServ, which is owned by private equity firm Providence Equity Partners.

It will operate like a credit card company, taking a merchant’s fee when the cards are used by retailers.

Phones4u takes on O2 with launch of two MasterCards

Marketing Week - 4 August 2009

Phones4u is to go head-to-head with O2 in the financial services market, with the launch of two MasterCard prepaid cards.

Managing director of EZ Pay, which owns Phones4u, Paul Smith, says marketing activity will be led by social media and heavyweight PR activity. There will also be radio promotions and advertorials and competitions in magazine titles such as Nuts, Take a Break and Woman’s Own. Smith says the major point of difference between the Phones4u and O2 services is that only O2 customers will be able to use its prepaid cards, while the former will not limit the offering to customers belonging to a certain mobile operator. The O2 Money cards, launched in partnership with Visa, consists of the Cash Manager card aimed at adults and the Load & Go targeted at teenagers from the age of 13. Smith says Phones4u is aiming to sell between 10,000 to 12,000 prepaid cards every month by the first quarter of next year. As an incentive, it will also offer loyalty features including a shopping rewards scheme at over 1,000 retailers when buying online, including iTunes, Next, Curry, Look and Lovefilm. Young consumers will also be prevented from using the prepaid card for accessing gaming, alcohol or adult content. Further, ethnic minorities will be able to use the card to send money overseas to family and friends without paying a transfer fee.

Isle-news.com - 9 July 2009

Conister Trust teams up with a leading prepaid service provider, Tuxedo Money Solutions

Tuxedo Money Solutions and Conister Trust have formed a partnership to target prepaid opportunities on the Isle of Man. Conister will issue MasterCard® prepaid cards for Tuxedo focussing initially on opportunities developed with Isle of Man Corporate Service Providers . Tuxedo’s market leading eccount® technology will be a key feature of the product offering.

The Isle of Man is a sophisticated financial centre and as such understands the flexibility and security owning a prepaid card provides.  Linking Conister Trust, an Isle of Man institution, with Tuxedo Money Solutions, who have a wealth of experience in this market, will provide local businesses with a unique proposition to enhance both their financial performance and their customers’ experience.

John Sharman (CEO Tuxedo Money Solutions) commented:  “Forming a partnership with Conister Trust will allow us to supply prepaid products to select new markets and to customers we are currently unable to target effectively. We have a high demand for our eccount® and card services in these niche market sectors and we are pleased to announce that we can accommodate these requests going forward. Connister Bank will not compete with our Issuer on programmes in the UK.”

Simon Hull (Conister Trust’s MD) adds, ‘’the Bank continues to evolve its prepaid card business and this agreement with Tuxedo Money Solutions is another milestone in the development of our card business as together we will be able to provide the full suite of prepaid services to the island’s finance centre.’’

 

Isleofman.com - 7 July 2009

Conister joins forces with Tuxedo

Manx-based Conister Trust has joined forces with a London-based company to offer prepaid MasterCards on the Island.

Conister Trust and Tuxedo Money Solutions say they will target opportunities with Isle of Man Corporate Service Providers.

Both companies say their joint experience in the prepaid cards market and the Isle of Man will mean they can help local businesses improve their financial performance and their customers’ experience.

Conister Trust’s managing director Simon Hull says the agreement with Tuxedo marks another milestone in the development of his company's card business.

 

 

PayBefore – 21 April 2009

TUXEDO MONEY ENABLES P2P PAYMENTS IN U.K.

Tuxedo Money today announced it is enabling cardholders to make instant person-to-person money transfers of up to £150 ($218.63) at a time in the U.K. The service enables any Tuxedo Money cardholder or eccount holder to transfer money to any other, according to a press release. Card-to-card transfers previously had been available from the London-based company but were restricted to transfers from a primary cardholder to a secondary cardholder on the same account, a Tuxedo Money spokesperson tells Paybefore. "We were concerned that our own service relied on a cardholder/authorized-user relationship to transfer money instantly and this did not suit many of our customers who preferred to have completely independent accounts—even within the same family,” said John Sharman, COO at Tuxedo Money. “This was the primary driver for us to develop this service.” Sharman added that additional impetus came from cardholders who had expressed a desire for a less cumbersome way to pay for items purchased on eBay or other online auction Websites. 

FinExtra- 21 April 2009

Tuxedo launches P2P payment service for cardholdersTuxedo Money Solutions has launched the first Person to Person (P2P) payment service in the UK on prepaid cards enabling thousands of users to make instant payments to each other for up to £150 at a time. After a period of extensive market research and consultation with their customer base Tuxedo identified three key areas where instant P2P payments would benefit its cardholders: sending money to friends and family in the UK and abroad, buying goods from online auction sites, and for 'emergency money.'John Sharman, Chief Operating Officer at Tuxedo commented that "we were concerned that our own service relied on a cardholder/authorised user relationship to transfer money instantly and this did not suit many of our customers who preferred to have completely independent accounts - even within the same family. This was the primary driver for us to develop this service.""Many of our cardholders that we spoke to were also frustrated with the options available for making payments on eBay and other online auction sites and this is an ideal alternative for sellers and buyers to some of the more expensive and cumbersome solutions currently offered. As we explored the market further, we identified that this is one of the best ways to get money to someone very quickly and is ideal for parents concerned for the safety of their children when travelling abroad, for friends and family needing a small emergency loan or even just being able to pay for someone's taxi to get home if they have overspent on a night out." he addedThe P2P payment service is another first offered by Tuxedo to help customers manage their money easily and eliminate delays when transferring funds. The service is offered free to customers throughout April and payments are charged at only £1 each thereafter.Tuxedo plans to roll out the service to all of its partner programmes in the near future.  

Source Media – 21 April 2009

 

UK'S TUXEDO OFFERS PREPAID FUNDS TRANSFERS: Tuxedo Money Plus Ltd., a prepaid card provider in the United Kingdom, has begun offering customers a service that enables them to send funds to other Tuxedo cardholders, a company spokesperson tells CardLine Global. Customers can send up to 150 UK pounds (US$218 or 169 euros) via online transfers or through a Tuxedo call center. Consumers pay 1 pound per transaction, though the company is waiving the fee for the rest of April. The prepaid company says this marks the first person-to-person payment service for prepaid cards in the UK, but CardLine Global could not immediately confirm that. The service is "ideal [for] sending money to a friend [or] family member in the UK or abroad, buying goods from online auction sites and for emergency money," the spokesperson says. Tuxedo's MasterCard-branded cards are issued through Newcastle Building Society. Earlier this year, the company launched its first prepaid corporate card (CardLine Global, 18 Feb.). The funds-transfer service launch comes amid deepening economic woes that are driving more consumers to prepaid cards, the spokesperson says.

Easier.com - 23 April 2009

Another first from Tuxedo - Instant Person to Person payments
Tuxedo Money Solutions has launched the first Person to Person (P2P) payment service in the UK on prepaid cards enabling thousands of users to make instant payments to each other for up to £150 at a time.

After a period of extensive market research and consultation with their customer base Tuxedo identified three key areas where instant P2P payments would benefit its cardholders: sending money to friends and family in the UK and abroad, buying goods from online auction sites, and for ‘emergency money.’

John Sharman, Chief Operating Officer at Tuxedo commented that “we were concerned that our own service relied on a cardholder/authorised user relationship to transfer money instantly and this did not suit many of our customers who preferred to have completely independent accounts – even within the same family. This was the primary driver for us to develop this service.”

“Many of our cardholders that we spoke to were also frustrated with the options available for making payments on eBay and other online auction sites and this is an ideal alternative for sellers and buyers to some of the more expensive and cumbersome solutions currently offered. As we explored the market further, we identified that this is one of the best ways to get money to someone very quickly and is ideal for parents concerned for the safety of their children when travelling abroad, for friends and family needing a small emergency loan or even just being able to pay for someone’s taxi to get home if they have overspent on a night out.” he added

The P2P payment service is another first offered by Tuxedo to help customers manage their money easily and eliminate delays when transferring funds. The service is offered free to customers throughout April and payments are charged at only £1 each thereafter.

Tuxedo plans to roll out the service to all of its partner programmes in the near future.

Other Tuxedo Firsts include:
Direct Debit Services
Standing Orders
Cheque cashing by mail
Instant Card to Card transfers to authorised users (with higher limits)

 

Facing up your finances - 19 May 2009

A 30-day breathing space for borrowers.

From the end of this month, all struggling borrowers who seek advice from a free debt advisory service will be given a 30-day breathing space from debt collection agencies.
The deal doesn't mean you have a month's holiday from your debt – it's an opportunity for you to make the first move instead of the debt collector.

Ed Bowsher, head of consumer finance at LoveMoney.com, says: 'The 30-day breathing space deal gives consumers a bit more time to own up to partners and start talking. You must also speak to your creditors. Be completely honest because most people respond well to honesty.'

Asking for help is the first battle to conquer, after that you might realise you have more options than you thought. For a lot of people a Debt Management Plan (DMP) will be most effective, whereby you negotiate reasonable terms of repayment with your lender.

Asking for help is the first battle to conquer, after that you might realise you have more options than you thought

Although they are informal arrangements and aren't legally binding, many lenders are receptive if you prove you're willing to repay what you can afford on a regular basis.

Constantly checking what you spend against the balance in your account and having the willpower to live within your means will help you climb out the red. Also look for tools to help you control current and future spending.

If you don't trust yourself with money you can load prepaid cards with cash to pay for different areas of expenditure e.g. one for food shopping and one for utility bills.

The key feature is that you can't spend more than is on the card, helping you monitor outgoings more effectively. There are lots of prepaid cards on the market, such as the White Eagle Freedom card, Tuxedo and a Post Office travel money card.

Check the comparison websites for the card best matching your needs. Then instead of spending all your cash, spend time calculating your incomings and outgoings so you know the extent of your problem.

Dodging phone calls from your lenders isn't a long-term solution either, so get your call in first. Nick Pearson, of Paymex, says: 'Often people start trying to sort their problems out and then leave it.

A lot of customers ring us when the situation becomes critical, which reduces the number of options available to them. Another common mistake is when customers fail to prioritise their commitments correctly.

It's important to prioritise more important commitments such as utility bills, mortgage payments or any kind of secured loan.'

 

International Banking Solutions – May 09

“Mike Stanley has been appointed director of sales and partnerships by Tuxedo Money Solutions, the prepaid card firm. He moves from MBNA/Bank of America, where he was director of sales for its European operation. He worked for Bank of America for 15 years.”

 

FinExtra, 19th May 2009

Tuxedo Money Solutions appoints Mike Stanley as Director of Sales and Partnerships.

Mike joins Tuxedo from MBNA/Bank of America where he worked as Director of Sales for the banks European operation.

John Sharman, COO Tuxedo Money Solutions commented: "We are delighted to have Mike onboard, his proven track record and industry experience will be valuable in driving sales and partnerships within Tuxedo. Mike developed many partnerships across different industries and with blue chip companies such as BT, Play.com and the Football Association to name a few. Mikes appointment shows Tuxedos commitment to be the leading partnership prepaid company in the UK. His experience, built up over 15 years at Bank of America - who are renowned for being the worlds largest credit card partner - will greatly assist Tuxedo with delivering our main vision of being the leaders in the prepaid market."

Mike Stanley adds: "I am pleased to be joining Tuxedo, who are a customer focused organisation with unique market leading product functionality. I expect to play a large part in developing existing partnerships and delivering new partner programmes during this exciting time in the prepaid industry."

 

Paybefore News, 10th June 2009

TUXEDO ASSISTS IN LAUNCH OF NOKIA OVI

Tuxedo Money Solutions yesterday announced it provided a Tuxedo MasterCard prepaid card for Nokia to assist in the media blitz surrounding the Finnish mobile handset manufacturer’s recent launch of Nokia Ovi, an online store where users can download applications for its newest devices. The London-based prepaid card provider said it supplied the cards distributed to more than 100 journalists who used them to download apps at a press event in London. While published reports said Ovi experienced intermittent service on the day of the launch due to high traffic on its Website, Tuxedo said in a press release that it was able to fulfill Nokia’s order on a tight deadline and on budget. “We have an incredibly agile B2B marketing team here at Tuxedo and our partner card printer, Thames Card, also pulled out all the stops to prevent a potential show stopper for the organizers of the launch,” said John Sharman, CEO of Tuxedo Money Solutions.  

 

www.thisismoney.co.uk and www.dailymail.co.uk/money

Warning on prepay card protection, June 2009

Holidaymakers, students and others who use popular prepay cards are being warned that they are not covered by the depositor protection scheme and are at risk if the issuing company goes bust.

Consumers are expected to load £50m on to cards this summer. This would be twice the sum spent last year and indicates the dramatic increase in the use of the cards.

They typically allow a maximum of £3,500 to be loaded, although some, including IDT Prime and Cashplus MasterCard Gold, accept far more. The Payzone Worldwide Money Master-Card allows cardholders to load up to £10,000.

Once loaded, the chip-and-pin cards - usually Visa, MasterCard or Maestro - are used to buy goods and services or withdraw cash. They are especially popular with holidaymakers as cash can be loaded in foreign currency.

Parents also use them to give children pocket money or emergency cash and the cards are widely promoted by the Post Office, among others.

But prepay cards are not covered by the Financial Services Compensation Scheme so the money stored on them is potentially at risk. The FSCS views the card as electronic money, not as deposits, and therefore outside its remit.

Financial adviser Yvonne Goodwin, who runs Yvonne Goodwin Wealth Management in Leeds, likes the idea of euro and dollar prepay cards for use on holidays, but she will not recommend them to clients because of the lack of protection.

She says: 'In the current climate it isn't beyond the realms of possibility that another major financial services company will go bust. Consumers should be made aware of the risk and keep card balances to a minimum.'

But Heather Barlow, marketing-director at Tuxedo Money, the largest prepay card company with almost 300,000 customers, says cardholders should not be concerned.

The Tuxedo card is a MasterCard administered by Newcastle Building Society. Newcastle keeps clients' funds in a ring-fenced account and the money would be safe if the society fell into difficulty, says Barlow.

'In the highly unlikely event of a default by Newcastle, the Tuxedo card programme and client funds would simply be transferred to another issuer,' she says. 'Customer funds would remain fully protected.'

Adam Wheeler, 24, an IT consultant from Kingston, south-west London, took out a Tuxedo card last month and plans to use it for two holidays this summer in the South of France and then in Las Vegas and Florida. Adam got the prepay card after it was recommended by a friend who had used one during a gap year.

'I like the fact that this is a standalone card,' says Adam. 'It means there is no fraud risk to my bank account. If the card is lost or stolen I have a number I can text immediately from my mobile phone to stop the card.'

When a card is lost or stolen and the cardholder reports it to their issuer immediately, they do not have to pay for any fraudulent activity. Remaining funds should be reimbursed.

•• COSTS: Between £5 and £12 to open most prepay card accounts, though some are free but charge a monthly fee of £2 to £6. The cards can be loaded online, in post offices and other outlets.

Flat charges of up to £7 can apply per loading.

There are further charges to access your cash, including cash machine and foreign transaction charges. Cash machine fees in the UK are about £1.50.

 

 

 

The Nilsen Report 01.2009
Tuxedo Money Solutions, a top prepaid card program service provider in the UK has completed its third round of venture capital funding, raising $3.8 million (£2.9 million) from existing shareholders. Colin Lubser is the Director of Sales and Marketing.

15.01.09 Finextra

Jobs to go as A&L quits pre-paid card market
The UK's Alliance & Leicester is closing down its pre-paid card business, putting up to 36 jobs at risk.

The bank says it has moved to withdraw from the pre-paid market following its acquisition by Spain's Banco Santander in October.

A review of operations concluded "the pre-paid card business of A&L is not a core part of Santander's UK strategy and will cease operations".

The decision will result in layoffs among the 36 staff working in A&L's pre-paid card unit, although some will be kept on in the short term to oversee the operation's closure.

The bank says it is in consultation with the affected employees and their representatives and some may be offered positions elsewhere within the Santander group.

It is also talking to existing customers to ensure an orderly wind down of the programme and insists no date has yet been set for cards to be cut off. It has refused to say how many pre-paid customers it has.

A&L has been at the forefront of the UK's pre-paid card market, establishing a dedicated unit in December 2007. The Prepaid Card Company Ltd (PCCL), was initially 80% owned by A&L, with the remaining 20% owned by Cupera International Ltd (CIL).

The deal saw the new subsidiary purchase Cupera for £4 million in cash and loan notes and retain the pre-paid card assets and existing employees of the CIL Group.
At this point, A&L had already been one of the UK's leading pre-paid card issuers. In June 2006 it teamed with MoneyCard to launch a Visa card designed for use by commercial clients that previously provided paper payments to customers or employees.

In 2006 the bank launched a pre-paid card for use by commercial clients as an alternative to providing paper payments to customers or employees. This was followed up in 2007 by a pre-paid offering for public sector organisations that can be used to deliver welfare payments.

Last September the bank teamed with payments vendor Indigosolutions to launch a pre-paid foreign currency card with SMS top-ups for holidaymakers.

16.01.09 PayBefore News

ALLIANCE & LEICESTER CARDHOLDERS SAFE FOR NOW
Alliance & Leicester plc (A&L), the U.K.-based bank and prepaid card issuer which was acquired by Spanish banking giant Banco Santander, S.A., in October of last year, announced yesterday it would exit the prepaid business (Paybefore Jan. 14, 2009). After a strategic review of the British bank’s businesses, Santander decided not to pursue prepaid going forward. At the moment, cardholders with A&L-issued prepaid cards will be unaffected by the move, and the company expects most cardholders to exhaust the funds on their cards before its prepaid operation ceases, Andy Homer, a spokesperson for A&L, tells Paybefore. “It’s early days. We’re now in consultations with customers to understand their needs, so our business decision will have as little impact as possible on their businesses. There is no set D-Day when the cards will stop or our operation will stop or how such a stoppage would be handled.” Homer declined to share how many A&L-issued cards were in the market or the number of programs for which it issues cards. Meanwhile, A&L’s departure is an opportunity for other prepaid companies in the U.K. "Alliance & Leicester launched their first program in the same week as Tuxedo did in March 2007, and it is a loss to the industry to see them withdrawing from the growing prepaid market that they have played such a significant role in,” says David Dey, chairman of Tuxedo Money Solutions, a U.K.-based program manager and card services provider. “Since the announcement [yesterday], we have already had several inquiries from companies that were engaged with A&L, some at an advanced stage. Following our successful results in the last quarter of 2008 and the substantial funding round in December (Paybefore Dec. 22, 2008), we are well positioned to take on this business."

 

IBS Journal - 20th March 2009  
Prepaid solutions firm, Tuxedo Money Solutions, has hired the former commercial director of prepaid at Alliance & Leicester (A&L), John Sharman, following the UK bank’s decision to shut down its prepaid business (IBS, February 2009). Sharman will be Tuxedo’s Chief Operating Officer. He has worked in financial services for some time, including holding senior positions with MBNA, A&L’s credit card provider.

 

PayBefore Magazine, March 2009

People on the Move: John Sharman, Tuxedo Money Solutions 

 

London-based prepaid card provider Tuxedo Money Solutions has appointed John Sharman Chief Operating Officer and a board member. Sharman joins Tuxedo from Alliance and Leicester, where he was commercial director of its prepaid business.   He has worked in the financial services industry for many years and has held senior positions in MBNA’s credit card and consumer finance operations.