NetSpend Partners With First Acceptance to Offer Underbanked Customers a New Way to Pay
February 15 2011 - 4:14PM
NetSpend Holdings, Inc. (Nasdaq:NTSP), a company whose mission is
to empower the estimated 60 million underbanked consumers in the
United States with the convenience, security and freedom to be
self-banked, today announced an agreement with First Acceptance
Corporation (NYSE:FAC) that will give First Acceptance the
opportunity to significantly simplify the lives of its
approximately 150,000 policyholders through the use of a NetSpend
prepaid debit card. First Acceptance is a leading provider of
non-standard auto insurance and related products through more than
380 retail locations in 12 states. The two companies expect
NetSpend prepaid debit cards to be made available at First
Acceptance retail locations in early 2011.
A safer alternative to cash and designed to be a less expensive
alternative to a traditional bank account for the underbanked
consumer, NetSpend prepaid debit cards produce significant benefits
for the underbanked consumer and the First Acceptance agent. The
cards save consumers time by empowering them to pay their insurance
premiums electronically—which eliminates the need to travel to the
agent's office and pay in person. For First Acceptance agents, the
two companies believe that the cards will result in higher customer
retention and provide a more reliable, secure, and less
labor-intensive payment mechanism, greatly reducing the payment
collection work on site.
"According to our data, insurance premiums are one of the top
ten payments our current cardholders make every month," said Dan
Henry, chief executive officer, NetSpend. "That's proof that
NetSpend prepaid debit cards offer an easy, cost-effective and
time-saving option for underbanked consumers to pay their
premiums. We look forward to working with First Acceptance to
bring this convenience to their policyholders as well."
"We are continuously searching for ways to simplify and enhance
the lives of our valued customers," said Steve Harrison, chief
executive officer, First Acceptance Corporation. "Giving our
unbanked policyholders access to safe and convenient financial
services through NetSpend reinforces our commitment to looking for
new and innovative ideas to meet the needs of our customers."
First Acceptance will fully integrate with the NetSpend
technology platform, allowing it to provide interested
policyholders with an instant-issue temporary card that can be
activated via phone or web and then loaded at one of NetSpend's
100,000 reload locations after the customer clears NetSpend's
federally-mandated identity verification process. The card can
then be used immediately for paying bills and making
purchases. A fully functional, personalized card will be
delivered to the customer in five to 10 business days, giving
him or her access to a full suite of product features including
free direct deposit, free online money transfers between
cardholders, complimentary AD&D insurance coverage and a
savings account that currently offers 5.00% APY—one of the highest
in the industry.
About NetSpend
NetSpend is a leading provider of general-purpose reloadable
(GPR) prepaid debit cards and related financial services to the
estimated 60 million underbanked consumers in the United States who
do not have a traditional bank account or who rely on alternative
financial services. The company's mission is to develop products
and services that empower unbanked consumers with the convenience,
security and freedom to be self-banked. Headquartered in
Austin, TX, NetSpend is traded on the NASDAQ stock exchange under
the symbol NTSP.
Please visit http://www.netspend.com for more information.
Follow NetSpend on Twitter: http://twitter.com/netspend or
Facebook: http://www.facebook.com/netspend
The NetSpend Holdings, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8154
About First Acceptance Corporation
First Acceptance Corporation (NYSE:FAC) is a leading provider of
non-standard personal automobile insurance and ancillary
products. Headquartered in Nashville, TN, First Acceptance
markets its services through the Acceptance Insurance, Yale
Insurance, and Insurance Plus brands. The company operates
over 380 retail locations in 12 states. For more information,
please visit us at www.firstacceptancecorp.com.
CONTACT: Press Contacts:
Brad Russell
NetSpend
(512) 539-5932 (office)
(512) 743-4507 (cell)
brussell@netspend.com
Suzanne Dawson
Linden Alschuler & Kaplan
(212) 329-1420 (office)
(908) 242-7162 (cell)
Sdawson@lakpr.com
Mike Bodayle
First Acceptance Corp.
(615) 844-2907 (office)
mbodayle@facins.com
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