JACKSON, Miss. -- Financial Technologies Inc. (FTI) has executed a national distribution agreement with CashWorks, the developer of an automated check-cashing product. Through this agreement, FTI will market the CashWorks Payport, a POS terminal which will enable businesses with ATMs to tap into the growing check-cashing market.
The CashWorks program uses the proprietary PayPort to approve checks and existing ATMs to dispense the cash. Earlier this year, CashWorks partnered with ATM manufacturer Tidel to roll out 25 pilot locations in Texas. According to Ken Rees, CashWorks president, more than $600,000 was dispensed from Tidel ATMs at six locations in the first six weeks of the pilot.
Tommy Glenn, FTI president, said in a news release, "By adding this CashWorks PayPort, existing ATM owners will be able to utilize the power of their ATM and improve their profitability."
In the same release, Rees said the agreement with FTI leverages FTI's strengths in sales, distribution and deployment and solidifies CashWork's credentials in developing and delivering ancillary products which can be integrated into existing ATM technology.
"With the ATM market maturing, it immediately broadens the range of services which can be offered through ATMs," Rees added.
Rees and Mike Stinson, Cashworks chairman, were both principals of InnoVentry, which deployed some 1,200 automated check-cashing kiosks in retail locations before going out of business in September of 2001.
Check cashing has become a lucrative business in the U.S., with check cashers making an estimated $3 billion dollars in fees annually. However, retail businesses have been hesitant to enter this market due to the need for high priced equipment and the risk of exposure to bad checks.
According to De Lone Wilson, FTI vice president, sales and distribution, the PayPort terminal can be easily coupled to a retailer's existing ATM and comes with a risk-free guarantee from CashWorks.
Formed in July 2001, CashWorks is a provider of technology solutions for the non-bank financial services industry, headquartered in Dallas.
