LOS ANGELES - Direct Response Financial Services Inc. (OTCBB:DRFL) and Optimum Pay USA Inc. have announced a purchase and sale agreement for delivery of 50,000 ATM/debit cards to Poder de Compra, Mexico, S.A., according to a news release. The initial purchase price of the deal is $250,000, plus ongoing revenue share from card activity.
Direct Response Financial is a leading provider of stored-value and debit card products and services to Hispanics and other underserved consumers. Optimum Pay USA is Direct Response Financial's technology partner.
Direct Card Services, a subsidiary of Direct Response Financial Services, will work with Optimum Pay USA develop the processing infrastructure for distribution of the debit cards.
As part of the agreement, Direct Card Services will make its DirectLoad Network available to Poder de Compra debit cardholders. This network includes Hispanic grocery store locations and more than 10,000 retail bank locations. Direct Card Services also will work with Poder de Compra to expand its DirectLoad Network to customers in the United States.
Richard Raskin, managing member of Poder de Compra, Mexico, S.A., said: "We are confident that Direct Card Services and Optimum Pay will be able to provide the necessary technology, banking and marketing support for our debit card customers. Their emphasis on the Hispanic market made them a natural choice as a business partner."
"Our company has made an intentional effort to understand the Hispanic financial consumer," said T. Randolph Catanese, chief executive and president of Direct Response Financial Services. "This intentionality has made our company a leader in providing financial products and services to Hispanics residing in the United States. ... We feel that this agreement is a landmark agreement in the expanding Hispanic financial industry."
