News

Kahuna in distribution deal with prepaid services provider

February 2, 2004

BLOOMINGTON, Ill. - Kahuna Business Group, an off-premise ATM provider with more than 5,000 machines under contract, has formed a partnership with Prepaid International Network (PIN) of Green Bay, Wis.

Under the agreement, Kahuna will be an exclusive distributor of PIN's prepaid products and services.

According to a news release, the two companies intend to capitalize on each other's strengths to deliver to the retail market a lineup of products and services utilizing the custom designed, proprietary software system developed by Prepaid International.

"Our relationship with Prepaid International is the culmination of several years of searching for the right partner and the right combination of products and services. We believe this is the ideal product line to bring to the retail market and capitalize on the outstanding profit potential that exists in the prepaid/financial services category," said Tom Mortimer, Kahuna's executive vice president. "This is the perfect opportunity to broaden the scope of our company from predominantly being an ATM provider to becoming a comprehensive financial solutions provider."

The partnership with Prepaid International will include guaranteed check cashing in all 50 states, which is accomplished by loading payroll and government checks onto a prepaid debit card, according to the release.

"There are competitors who employ check cashing solutions; however, none to my knowledge can cash checks in all 50 states in the manner we deliver," Mortimer said. "This application alone could easily drive up ATM transactions at participating locations by 25 percent or more."

Other products and services that may be offered via the partnership include prepaid long distance and wireless; Internet access; roadside assistance; health benefits; prepaid debit cards; payroll solutions; money transfers; credit card processing and customized loyalty and gift card programs, according to the release.

All products will be delivered via a single Verifone Omni 3750 point-of-sale terminal. "The ability to deliver all of this with a single, established terminal such as Verifone is an outstanding benefit to the merchant and a key differentiator for our affiliates," said Ernie Beckman, Kahuna's director of Affiliate Sales.

Kahuna intends to market the new products primarily through its existing nationwide channel of affiliate organizations.

"We want to proceed with caution as we look for high quality, partner organizations to distribute this product line," said Beckman. "We want to achieve maximum distribution while maintaining the integrity in this product line. We do not want to facilitate a situation similar to the ATM market where margins have been eroded by intense and sometimes unscrupulous competition."

Robert Smithers, president of Prepaid International, said, "Our relationship with Kahuna allows us immediate penetration into our target market through their quality distribution channel, while allowing us to focus on our primary mission of bringing customized, in-demand solutions to the market and providing outstanding client service and support to our retail merchants."