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The tactic they did was really cheap. Infact it probably needed little to no cash upfront. What they did was use typical prepaid debit cards and used that as a
by neximo64 3y ago
The tactic they did was really cheap. Infact it probably needed little to no cash upfront.
What they did was use typical prepaid debit cards and used that as a 'bank'. Then later when they got traction actually made it a bank.
The prepaid debit cards were cheap each such that it didn't need alot of funds, but the issuer took all the profits from it and charged for each card.
The cards were prepaid cards but no one really card or noticed the difference and they got tens of thousands of people on them, then raised more funds for the onerous capital requirements of a bank.
- ryansam10 3y agoBy "issuer" do you mean the company which was a real bank who issued them prepaid debit cards? For example right now I can go to Visa and order a prepaid card. That's simple enough but for a startup idea I would need to put my own branding on it and also be able to link the transactions through a mobile app. https://usa.visa.com/pay-with-visa/cards/prepaid-cards.html https://usa.visa.com/pay-with-visa/cards/prepaid-cards.html