Visa Inc. (NYSE: V) and Chexar Networks, Inc. (“CHEXAR”) announced today the launch of a network platform to digitize traditional banking services for consumers. Initially, the platform will enable millions of Visa prepaid users to deposit paper checks to their reloadable Visa prepaid card using their mobile device, by simply snapping a photo of a paper check. Powered by Chexar’s technology, including its remote deposit capture platform, the service provides Visa cardholders with immediate access to funds on their Visa prepaid card, enhancing convenience and security and reducing costs for consumers. Later this year, new and existing prepaid cardholders with RushCard, AccountNow and Plastyc, as well as select FSV Payment Systems cardholders, will be able to enroll their Visa prepaid card, and immediately begin making remote deposits.
The platform will support check deposits to Visa cards, funds transfers between Direct Deposit Accounts (DDAs) and payment cards, person-to-person payments and bill payment services whether in-person, online, on a mobile device or at an ATM. Transactions originate and terminate with a financial institution partner and consumer funds sit within an FDIC-insured account. As consumers move between devices and deposit channels, their prepaid account now moves seamlessly with them and works reliably from any device. Chexar predicts that 11 percent (770 million) of consumer checks will be deposited using a mobile device by 2016.
“We see this network utility as more than a technology, it’s an evolution in the way people deposit and move funds and our goal is to make that process frictionless and immediate for consumers,” said Drew W. Edwards, Chexar founder and CEO. “It’s no secret that reloadable prepaid cards are growing in popularity, and we are happy to provide consumers with a secure and convenient way to deposit funds and have immediate access to their money. Our agreement with Visa represents an inflection point for the prepaid industry, and will only grow as mobile devices become more ubiquitous.”