TALK 'N TOSS creates prepaid phone card profit center for community banks

Business Wire, Feb 15, 1996

Technologies Inc., the nation's leading provider of prepaid phone cards, has introduced THE KIT, a new line of TALK 'N TOSS(r) prepaid long distance phone cards specially packaged for sale by community banks and financial services companies.

THE KIT offers financial institutions an easy and low-cost way to participate in this rapidly-growing multi-million dollar segment of the telecommunications industry. Banks can sell the cards to create a new profit center as well as use the cards as a marketing tool to attract, reward, and retain customers.

THE KIT comes complete with a supply of prepaid phone cards, point-of-sale marketing materials, and sales instructions for branch personnel. The package will wholesale for $795 and include 40 30-minute phone cards at a retail price of $10 and 40 60-minute cards at a retail price of $20. If all cards in THE KIT are sold, the participating bank will realize a gross profit margin of up to 50 percent on revenues of $1200.

"Banks, thrifts and credit unions are interested in merchandising this new financial service, both to generate fees and to reinforce the availability of valuable services from local institutions," says Bill Schutz, BLT's vice president of sales and marketing, Financial Institutions Group. "In the future, prepaid phone cards could be used by banks to expand ATM services as well as help introduce the highly anticipated stored value and smart card technologies."

According to Schutz, the TALK 'N TOSS cards and promotional materials included in THE KIT will be generic in design, although banks will have an opportunity to adapt the cards by recording customized closing voice announcements. Each time the prepaid phone card is used by an end user, a short announcement will be heard to promote the bank that issued the card.

After a phone card's initial minutes are depleted, a customer can "recharge" the card using a major credit card. BLT is offering commissions to the issuing bank for any subsequent recharge purchases made by the bank's customers.

In the United States, prepaid phone cards have become a $500 million business. A wide range of industries have embraced prepaid phone cards as a successful revenue generator and cross promotional tool. Consumers are equally happy with the new product because it can save more than 60 percent on their long-distance calls when away from the home or office.

To aid banks in the training and promotion of prepaid phone cards, BLT is also introducing THE STARTER KIT. A sales training manual, camera-ready artwork for advertisements, voice-branding script sheets and a supply of demonstration cards are included in THE STARTER KIT which is available for separate purchase.

TALK 'N TOSS, a registered trademark of Vancouver, Wash.-based BLT Technologies Inc., is available in more than 15,000 retail locations nationwide including Thrifty/PayLess, Revco Drug Stores, Albertson's, Southland/7-Eleven, Long's Drug Stores and Circle K. BLT established the Financial Institutions Group in 1995 to focus on the growing interest of banks in providing prepaid phone cards to their customers.

Information on THE KIT and THE STARTER KIT as well as other promotional, ATM-delivered and private-label programs can be obtained by contacting BLT's Financial Institutions Group at 360/695-7000.

CONTACT: BLT Technologies Inc.

William Schutz, 360/695-7000, X 1246

or

The Iris Group

Susan Lucke, 503/223-2802