AUSTIN, Texas, Feb. 24, 2011 (GLOBE NEWSWIRE) -- 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 a new marketing agreement with The General Automobile Insurance Services, Inc. (The General ® ). The agreement will give the insurance agency an opportunity to significantly simplify the lives of its customers through the use of a NetSpend prepaid debit card. The General ® , through its affiliated insurance companies, has been writing automobile insurance online and in many states throughout the country since 1963.
A safer alternative to cash and designed to be a less expensive alternative to a traditional bank account for underbanked consumers, NetSpend prepaid debit cards produce significant benefits for consumers and the insurance companies that offer them. Through their NetSpend card, consumers save time by paying their auto insurance premiums electronically in the safety and security of their own home through online bill pay—eliminating the need for money orders or wire transfers. It also can save them money in two ways: first, they avoid the fees for money orders or wire transfers and, where available, they can also receive a discount by paying electronically. For The General ® and other non-standard auto providers, NetSpend prepaid debit cards can help increase their premium income through higher customer retention.
"Our internal data shows that many of our current customers are already using their NetSpend cards to pay their auto insurance premiums—it's one of the top ten payment categories every month," said Dan Henry, chief executive officer, NetSpend. "The time and money that NetSpend prepaid debit cards saves these consumers is truly remarkable. The General ® is going to be a fantastic partner in offering this solution to their policyholders.""We are happy to be partnering with NetSpend. We believe that their product will add value to our customers," said Drew Martin, senior vice president, corporate-wide sales and distribution at The General ® . Interested policyholders with The General ® can apply for a NetSpend prepaid debit card by visiting http://www.netspend.com/pgc . After the applicant clears the federally-mandated identity verification process, a fully functional, personalized card will be delivered in five to 10 business days giving him or her access to more than 100,000 reload locations and 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 rates 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.