Are you about starting a prepaid credit card business? If YES, here is a complete sample prepaid credit card business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a prepaid credit card business.
We also took it further by analyzing and drafting a sample prepaid credit card marketing plan template backed up by actionable guerrilla marketing ideas for prepaid credit card businesses. So let’s proceed to the business planning section.
Why Start a Prepaid Credit Card Company?
If you live in the united states of America or in any developed country, you will agree that there are opportunities for citizens to access prepaid credit card as long as they have means of financing the credit card.
Starting a prepaid credit card services business can be risky, but if you have done your due diligence before venturing into the business, you are likely not going to run at a loss. First and foremost, you are expected to have experience in the financial industry. It will pay you to study accountancy or banking and finance if indeed you want to venture into this line of business.
Starting a prepaid credit card company requires reasonable startup capital, but the fact remains that it is a profitable venture. It is important to state that a prepaid credit card company is a highly risky venture because you stand the chance of getting your money trapped by those who for one reason or the other won’t be able to pay back the loans.
It is very important that you analyze the existing prepaid credit card companies in and outside of your area. You will be required to check the existing competition, as well as know their strengths and weaknesses. Knowing the weaknesses of the existing prepaid credit card companies around you, means that you would be able to learn from their mistakes and in turn come up with a better company devoid of the mistakes and weaknesses of others.
If you are interested in starting a prepaid credit card company, then you should be ready to conduct thorough feasibility studies and market survey before committing your money and other resources to it. Aside from a thorough and detailed feasibility studies and market survey, you will need a good and workable business plan.
Below is a sample prepaid credit card company business plan template that can help you successfully write your own with little or no stress.
A Sample Prepaid Credit Card Company Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The Prepaid Credit & Debit Card Providers industry is made up of companies that issue preloaded, open-loop credit and debit cards to consumers for making purchases. Electronic Benefits Transfer (EBT) cards or closed-loop, store-branded gift cards et al are not part of the Prepaid Credit & Debit Card Providers industry.
The Prepaid Credit & Debit Card Providers industry is in a mature stage of its growth. The industry is characterized by growth in line with the overall outlook of the economy, consolidation from the largest players in the industry and wholehearted market acceptance of industry products and services.
If you are a close observer of the Prepaid Credit and Debit Card Providers industry, you will agree that the industry has experienced strong growth over the years. Despite the fact that the slow recovery preceding the recession hampered many other industries, the weak economy played to this industry’s strength.
Less number of consumers qualified for credit and bank accounts hence opting for prepaid cards. A growing need for electronic payment forms and rising fees in traditional banking institutions made prepaid cards attractive.
The Prepaid Credit and Debit Card Providers industry is indeed a large industry and pretty much active in most developed countries of the world especially in the United States of America, United Kingdom, Japan and Canada et al.
Statistics has it that in the United States of America alone, there are about 285 registered and licensed Prepaid Credit and Debit Card Providers responsible for employing about 8,411 people and the industry rakes in a whooping sum of $5 billion annually.
The industry is projected to enjoy 21.8 percent annual growth within 2011 and 2016. The establishments with the lion shares of the available market in this industry in the United States are Blackhawk, Green Dot Corporation and NetSpend Corporation.
A recent report released by IBISWORLD shows that the Prepaid Credit and Debit Card Providers industry is in the growth stage of its life cycle, indicated by a positive industry value added (IVA) and a growing number of establishments. The report shows that IVA, which measures the industry’s contribution to the overall economy, is expected to increase at an annualized rate of 9.8 percent over the 10 years to 2022.
In contrast, US GDP is projected to grow at an annualized rate of 2.1 percent during the same period. These figures signify that the industry is expected to experience stronger growth than the overall economy, a characteristic indicative of an industry in the growth of phase of its economic life cycle.
One thing is certain about starting a prepaid credit and debit card company, if you are able to conduct your market research and feasibility studies, you will not struggle to secure clients because there are always clients in the United States who would need your services from to time.
The fact that prepaid credit and debit card companies have being in existence for a long time the United States of America, does not in any way make the industry to be over saturated.
Some of the factors that encourage entrepreneurs to start their own prepaid credit and debit card company despite the fact that the business is risky could be that the business is profitable and can be started informally, without the rigors of raising capital to meet certain capital base/capitalization as required by the regulating authorities.
Lastly, with a prepaid credit and debit card company, you can afford to partner with financial institutions especially banks so as to get a good leverage to build your company. The bottom line if that if you are have a robust network and you are well positioned, you can indeed maximize profits with your prepaid credit and debit card company.
2. Executive Summary
Flash Money® Prepaid MasterCard, Inc. is a licensed prepaid credit card processing company. The business will be based in Ocean Pines – Maryland and we are able to secure a well – positioned and standard office facility in the heart of the city.
Flash Money® Prepaid MasterCard, Inc. is a client – focused and result driven company that provides broad – based services such as financial transaction processing, issuing preloaded, open-loop credit and debit cards to consumers for making purchases at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer standard and professional prepaid credit card card processing services and related services to our clients at local, state, national, and international level. At Flash Money® Prepaid MasterCard, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in the Prepaid Credit Card Providers industry.
Flash Money® Prepaid MasterCard, Inc. will at all – time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position the business to become the leading brand in prepaid credit card providers business in the whole of Ocean Pines – Maryland, and also to be amongst the top 10 prepaid credit card providers in the United States of America within the first 10 years of operation.
This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Ocean Pines – Maryland is the right place to launch our business before sourcing for clients from other cities in The United States of America.
Flash Money® Prepaid MasterCard, Inc. is founded by Clem Jerson and Joel Stevenson. The organization will be managed by both of them since they have adequate working experience to manage such business. Clem Jerson has over 5 years’ experience working at various capacities within the financial cum Prepaid Credit and Debit Card Providers industry in the United States of America.
Mr. Clem Jerson graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered accountant with a background on prepaid credit card providers services.
3. Our Products and Services
Flash Money® Prepaid MasterCard, Inc. is going to offer varieties of services within the scope of the Prepaid Credit Card Providers industry in the United States of America. Our intention of starting our company is to work with individuals, smaller organizations (start – ups and mom and pop shops) and also well – established corporate organizations who would want to hire our services.
We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals. Our business offerings are listed below;
- Credit card processing services
- Prepaid card services
- Issuing prepaid debit and credit cards
- Providing reloading services
- Issuing replacement debit and credit cards
- Providing financial advice to individuals and small businesses
4. Our Mission and Vision Statement
- Our vision is to build a prepaid credit card processing brand that will become the number one choice for individuals, smaller businesses and corporate clients in the whole of Ocean Pines – Maryland.
- Our mission is to provide broad – based services such as financial transaction processing, issuing preloaded, open-loop credit and debit cards to consumers for making purchases at an affordable fee. We will position the business to become one of the leading brands in the whole of Ocean Pines – Maryland, and also to be amongst the top 10 prepaid credit and debit card processing companies in the United States of America within the first 10 years of operations.
Our Business Structure
As part of our plan to build a standard prepaid credit and debit card processing company in Ocean Pines – Maryland, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.
The kind of prepaid credit card providers business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Ocean Pines – Maryland as long as they are willing and ready to work with us. Below is the business structure that we will build Flash Money® Prepaid MasterCard, Inc.;
- Chief Executive Officer
- Prepaid Credit Card Processing Consultants
- Admin and HR Manager
- Marketing and Sales Executive
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Prepaid Credit Card Processing Consultants
- Responsible for handling cores services such as credit card processing, prepaid card, Issuing prepaid debit and credit cards, providing reloading services, issuing replacement debit and credit cards, automated bank or check clearinghouses (except central bank) and check clearing and validation services (except central bank)
- In charge of taking care of electronic funds-transfer services, electronic financial payment services and reserve and liquidity services (except central bank)
- Responsible for handling financial transactions processing (except central bank) and bank clearinghouse associations
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Marketing and Sales Executive
- Identify, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Creates reports from the information concerning the financial transactions recorded by the bookkeeper
- Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
- Provides managements with financial analyses, development budgets, and accounting reports
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Client Service Executive / Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distribute mails in the organization
6. SWOT Analysis
Flash Money® Prepaid MasterCard, Inc. engaged the services of a professional in the area of business consulting and structuring to assist the firm in building a well – structured prepaid credit company that can compete in the highly competitive industry.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Flash Money® Prepaid MasterCard, Inc.;
Our workforce is of course top of the list when it comes to our strength as a business. We have a team that can give our clients value for their money; a team that is trained and equipped to pay attention to details and to deliver excellent services.
Aside from the synergy that exists in our carefully selected workforce, we have a very strong online presence are and we are well positioned and we know we will attract clients from the first day we open our doors for business.
As a new prepaid credit card processing company, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated Prepaid Credit Card Providers industry; that is perhaps our major weakness. So also, we may not have the required cash to give our business the kind of publicity we would have loved to.
The opportunities in the Prepaid Credit Card Providers industry is massive considering the number of people and business that rely on prepaid credit card to make purchase. As a standard credit card processing company, we are ready to take advantage of any opportunity that comes our way.
Some of the threats that we are likely going to face as a prepaid credit card processing company operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operation and global economic downturn which usually affects purchasing / spending power.
7. MARKET ANALYSIS
- Market Trends
A recent trend in the Prepaid Credit Card Providers industry shows that increased consumer spending has boosted transaction volumes in recent years, electronic payments are expected to continue boosting industry revenue and security issues and data breaches are expected to continue challenging the growth of the industry.
The Prepaid Credit Card industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online credit card processing options. Despite the fact that the recent improving economic conditions are expected to support the growth of revenue generated in the industry, some companies’ performance will be stunted, as online credit card providers pose a big threat to traditional brick-and-mortar firms.
Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry. Lastly, operators in this industry get all the testimonials they can and publish them on their website and promotional materials. This usually goes a long way to give them credibility and also to attract more clients.
8. Our Target Market
The demographic and psychographic composition of those who need the services of prepaid credit card processing services cuts across both small and large corporations and individual clients as well.
Flash Money® Prepaid MasterCard, Inc. will initially serve small to medium sized businesses and individual clients, but that does not in any way stop us from growing to compete with the leading prepaid credit card processing firms in the United States.
Our target market cuts across businesses of different sizes and industries. We are coming into the industry with a business concept that will enable us work with small businesses and bigger corporations in and around Ocean Pines – Maryland and other cities in the United States of America. Below is a list of the businesses and organizations that we have specifically designed our products and services for;
- Individual clients
- Corporate Organizations
- Religious Organizations (Pilgrimage journeys et al)
- Entrepreneurs and Startups
Our competitive advantage
The level of competition in the Prepaid Credit Card Providers industry depends largely on the location of the business and of course the niche of your services. If you can create a unique brand identity for your prepaid credit card processing company or carve out a unique market, you are likely going to experience less competition.
We can boast of having unlimited access to the latest available and most efficient technology and techniques, low operating costs and use of specialist equipment or facilities.
Flash Money® Prepaid MasterCard, Inc. might be a new entrant into the industry in the United States of America, but our management staff and owners of the business are highly qualified credit card processing experts in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiff competitions amongst prepaid credit card processing service providers in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard prepaid credit card processing business that will leverage on word of mouth advertisement from our satisfied clients.
Our goal is to grow our credit card processing firm to become one of the top 10 prepaid credit and debit card processing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Ocean Pines – Maryland, but also in other cities in the United States of America.
Flash Money® Prepaid MasterCard, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, universities and colleges, households and key stake holders in Ocean Pines and other cities in the United States of America.
- Advertise our business in relevant financial and business – related magazines, newspapers, TV and radio stations.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local finance and business expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver quality services to them
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industries with the aim of marketing our services.
Sources of Income
Flash Money® Prepaid MasterCard, Inc. is established with the aim of maximizing profits in the Prepaid Credit Providers industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Flash Money® Prepaid MasterCard, Inc. will generate income by offering the following financial services;
- Credit card processing services
- Prepaid card services
- Issuing prepaid debit and credit cards
- Providing reloading services
- Issuing replacement debit and credit cards
- Providing financial advice to individuals and small businesses
10. Sales Forecast
We are well positioned to take on the available market in Ocean Pines – Maryland and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base beyond Ocean Pines to other cities in Maryland.
We have been able to examine the prepaid credit card processing and debit card services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Flash Money® Prepaid MasterCard, Inc., it is based on the location of our business and the wide range of services that we will be offering;
- First Fiscal Year (FY1): $750,000
- Second Fiscal Year (FY2): $1 Million
- Third Fiscal Year (FY3): $2 Million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. There won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the prepaid credit card processing industry by storm which is why we have made provisions for effective publicity and advertisement of our company.
Below are the platforms we intend to leverage on to promote and advertise Flash Money® Prepaid MasterCard, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards on strategic locations all around Ocean Pines – Maryland
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are branded with our company’s logo et al.
12. Our Pricing Strategy
At Flash Money® Prepaid MasterCard, Inc. we will keep our service charges a little bit below the average market rate by keeping our overhead low and by collecting payment in advance.
- Payment Options
The payment policy adopted by Flash Money® Prepaid MasterCard, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Flash Money® Prepaid MasterCard, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
These are the area we are looking towards spending our startup capital on;
- The total fee for incorporating the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $8,300.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
- Marketing promotion expenses for the grand opening of Flash Money® Prepaid MasterCard, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $8,580.
- The total cost for hiring Business Consultant – $5,500
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The cost of launching our official website – $600
- Operational/transactional cash and card production cost inclusive – $500,000
- The budget for paying at least two employees for 3 months and utility bills – $30,000
- Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous – $5,000
Going by the report from the research and feasibility studies, we will need about Six Hundred and Fifty Thousand US Dollars ($650,000) to set up a small scale but standard prepaid credit and debit card processing company in the United States of America.
Generating Funds/Startup Capital for Flash Money® Prepaid MasterCard, Inc.
Flash Money® Prepaid MasterCard, Inc. is owned and managed by Clem Jerson and his business partner Joel Stevenson. They decided to restrict the sourcing of the startup capital for the business to just three major sources. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $600,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Flash Money® Prepaid MasterCard, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our prepaid credit card processing services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Flash Money® Prepaid MasterCard, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing a standard and well positioned office facility in the heart of Ocean Pines – Maryland: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors, card manufacturers and key players in the industry: In Progress