DataWave Systems Inc -
DataWave cards to be sold in Coinstar machines
DataWave Systems Inc
DTV
Shares issued 41,683,791
2000-06-02 close $0.79
Monday Jun 5 2000
Mr. John Gunn reports
DataWave Systems has signed an agreement with Coinstar Inc., a leading coin
counting and e-services company, to explore opportunities to deliver prepaid cash
cards through Coinstar's nationwide network of more than 7,500 machines, which
are located in leading U.S. supermarkets. Coinstar has processed, to date,
through these machines more than $2.3-billion worth of coin.
"This partnership provides an opportunity for DataWave to quickly roll out our
prepaid card technology to Coinstar's broad customer base," remarked Josh
Emanuel, president and chief executive officer of DataWave. "It is a natural
progression of our recently announced agreement with Michigan National Bank to
develop technology related to the manufacture and marketing of a prepaid cash
card. We anticipate being able to replicate the success we have experienced in the
large and expanding phone card market."
DataWave has already developed a secure, fast, and efficient way of dispensing
prepaid products. In the past three years, more than four million consumers have
used the DataWave system to purchase prepaid phone cards. Ultimately, the two
companies hope to incorporate DataWave's unique wireless prepaid processing
system into all Coinstar machines, enabling them to provide point-of-sale activated
prepaid cash cards in any amount.
Prepaid cash cards can be used to make payments for goods and services
throughout the world using existing debit or credit card networks. The prepaid
cards are an excellent way for consumers -- especially the large teenage market --
to purchase items on the Internet.
"This service represents an ideal fit and means of leveraging Coinstar's existing
infrastructure, which we uitilize in our coin counting business," said Dan Gerrity,
president and chief executive officer of Coinstar. "By the end of this year, we hope
to have launched a pilot project in one of our existing markets."
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