Funny how he can predict a revenue stream, but can't write an accurate PR.
There is almost no money in debit card transactions on the retail level. That is why most places charge to use debit, they can't cover the costs to the processor on the transaction alone. Processors are going to take as much of the profit as they can.
IMO it works the same way with a pre-paid debit card. Difference being the load fees and the bill pay fees etc etc. Which actually brings us to another problem. These cards are aimed at people without bank accounts or with limited access to one. So, who in the United States can't afford a bank account but is willing and able to pay a 10 dollar charge to pay their bills and a charge to load money onto their accounts? My guess is not too many.
Ideally this strategy would be aimed at the DR, but who knows how far behind that is.
Which brings me back to the overall profit to be made by these cards. The processor is going to be taking nearly all the money as its mostly their operation. In fact, I would be surprised if o2 didnt have to pay a large royalty in the form of a profit percentage just for minting the cards in their name. Which probably leaves us with less than 1/2 a percent in terms of actual profit unless people start utilizing the bill pay features - which would only be necessary for o2USA service which has no definite launch date.
And how many shares did he sell into that debit card PR?
Lol
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