As with most advancements, technology can change the methods of distribution. New, sophisticated electronic payment solutions are providing multiple customer touchpoints for replenishing prepaid mobile airtime. Recharge, or top-up, services are now appealing to mobile subscribers as an easy, convenient and flexible billing alternative.

Offering the electronic recharge transaction type is a cheap, easy way to create excitement in the marketplace. This new value-added service benefits financial institutions by:

• expanding its offerings and building new revenue streams
  
  
• providing a service others don't have, resulting in reduced churn
  
  
• attaining new technology-savvy customers that are looking for a next-generation bank to complements their active lifestyles

Euronet expands its transaction capabilities by acquiring e-pay
e-pay is the largest electronic payments processor of prepaid mobile airtime top-up services in the U.K. and Australia, with approximately 35% and 75% market share in their regions, respectively. e-pay, which was founded in 1999, quickly became a leader in the cash-based recharge, or "top-up," market for processing electronic purchases of prepaid mobile airtime and long-distance calling cards. The company currently supports top-up purchases for mobile service providers at more than 50,000 point-of-sale (POS) terminals in approximately 18,000 retail locations.

In established markets like the U.K., top-up growth comes primarily from the mobile operators' shift from scratch-off cards to electronic distribution and from the addition of new retailers and POS devices. According to Oftel, the U.K. telecommunications regulator, and EMC, a leading research group, 82% of the U.K.'s 59.7 million population carry mobile phones and spend $14.6 billion annually on mobile services. Of those users, 69% have prepaid services, spending approximately $7.1 billion annually.

Euronet gives U.S. top-ups a focused approach with PaySpot
According to Atlantic-ACM research, the growth of the U.S. prepaid industry from 2002 to 2008 will enjoy slightly less than 10% compound annual growth rates.

Euronet's PaySpot prepaid recharge services program enables consumers to purchase wireless airtime and long distance calling plans from ATMs and POS devices throughout the United States. The service allows consumers to go to ATMs or the checkout counter at PaySpot locations in convenience stores and other sites to recharge prepaid mobile accounts from major and regional mobile operators. Additionally, consumers can select prepaid long distance calling plans.

The PaySpot program enables debit/credit card-based transactions at the ATM and cash-based purchases using a POS terminal. PaySpot recharge services do not require the merchant to stock cards or purchase inventory.

Electronic recharge provides the ultimate convenience
Via ATMs or directly from a mobile phone, customers can add prepaid mobile airtime with Euronet's Electronic Recharge solutions. These solutions benefit banks by:

• increasing transaction volumes
  
  
• providing a unique value-added services
  
  
• expanding brand recognition
  
  
• enhancing customer loyalty
  
  
• enticing new technology-savvy customers
  
  
• creating new marketing channels
  
  
• offering customers greater flexibility and convenience