PrepaYd Inc. (fka PPDC)

[Bobwins]

This is good news. PrepaYd is testing the kiosk concept. Eventually I think they will franchise the concept to spread the PrepaYd brand across the US. They can develop the kiosk physical cart appearance and function thru these company owned units and finalize a design that can be manufactured. The other advantage of the kiosk is that PrepaYd can experiment with different approaches to see what results in higher sales and cross sells of the phones and the debit card.

Berman likes to experiment and he will test many concepts before deciding to proceed with the franchise business model.

This could also be a test for the mall company, Westfield. If the kiosk proves viable, this is another rev source for Westfield that could be added to all their malls across the country. Ideally, PrepaYd would have to have agreements prearranged with big mall companies so that local franchisees would just contact the nearest big mall to locate their kiosk. That requires a lot of legwork upfront before the first franchisee is ever signed up. PrepaYd has to know the parameters of what the kiosk owner will be charged for rent and % of gross sales before they can build a business model that will work in any mall.

Don't know if/when we will benefit from all this but Berman has big plans for PrepaYd and this is a small piece.