Meta Payments Systems has announced "the iAdvance Line of Credit for the millions of Americans who are unable to access affordable, small dollar credit."
Patent-pending iAdvance integrates with select Meta-issued prepaid programs to create a complete value proposition for cardholders. In addition to the convenience and security of paying bills and making purchases with a prepaid card, customers can now easily borrow small amounts and have the money immediately available on their prepaid card.
"For the first time, the prepaid card relationship encompasses every basic financial activity for the traditionally underserved consumer -- transactions, savings, bill payment, online account access and now credit," said Trent Sorbe, Senior Vice President of Credit at MPS. "iAdvance offers a simple and convenient credit alternative that prevents underserved consumers from falling into a debt treadmill by borrowing from nonbank lenders."
As the issuer of more than 50 million prepaid cards, Meta is uniquely positioned to penetrate the underserved marketplace with iAdvance. "Because the adoption rate for prepaid products is highest among the underserved, we can leverage an unmatched delivery channel to bring the most convenient and simple small dollar credit solution to the marketplace," added Sorbe.
The enrollment process takes less than two minutes, and no credit check is required. Once enrolled, advances are completed in seconds by telephone or at MyiAdvance.com, with funds immediately available to the borrower using the prepaid card. And, unlike nonbank small loan products, customer repayment histories are reported to the major credit bureaus. Sorbe adds, "The premise of iAdvance is for consumers to regain control of their financial future by borrowing only what they need on terms that are responsive -- not exploitative."
FSV Payment Systems, a leading provider of payroll card programs, marketed iAdvance as part of the product's beta test in late 2007. "The market need for affordable access to short-term credit is well documented -- iAdvance meets that need very effectively," said Jon Palmer, President and CEO of FSV Payment Systems. "With iAdvance, FSV's payroll cardholders can now readily access small amounts of money to meet unexpected short-term financial needs in a way never before available. The response from cardholders has been enthusiastic. It's an outstanding offer," added Palmer.
In addition to FSV, AccountNow, a provider of prepaid card accounts, is launching iAdvance to their customer base. "The most requested feature from our customers revolves around their credit needs. Our customers need a bridge to cover immediate financial needs but at a more reasonable cost than going to a strip-mall lender. iAdvance meets this need, while also increasing simplicity and convenience," said Tim Coltrell, Chief Executive Officer of AccountNow.
"Coming to market with recognized leaders in the effort to serve underserved consumers speaks volumes about the demand for iAdvance and the opportunity for Meta," added Sorbe.