Tag Archives: Consumer Spending

Challenging Tradition: Alternative Payment Solutions

For as long as consumers have shopped, merchants have provided payment solutions. Whether it was through a barter system when money got tight or during the advent of the credit card, both buyers and sellers have gravitated to the most economical and efficient payment methods at hand. That is why this season of payment solutions is so fascinating. The trends are definitely shifting, and consumers are choosing with their wallets, literally in this case. Merchants are also seeCaptureking solutions that protect their bottom lines.

Intevacon offers a unique payment solution focused exclusively on the oil marketer—we created this system for the marketer, and our business model is built for his/her benefit. As a card processor, Intevacon provides all levels of card processing data—transaction details, quantities, taxes, product codes, etc.—without having to involve the middlemen.

Think of the traditional credit card processor. When you think of this credit card processor, you also have to think of all of the other players involved—the banks (both the cardholder and the merchant bank), the issuer of the card, the acquirer, etc. Credit card fees continue to increase as each player takes a piece of the pie. With margins for fuel counted in pennies, this cut is noticeable to a marketer. Not only does the marketer sacrifice his/her margin to processing fees, but he/she also loses the relationship to the cardholder.

We have seen traditional banks fall out of vogue more and more in time. An article in CSP News titled “Blowing Up the Bank” starts with the line “The banking system today is going to be totally blown up in the next 10 years.”1 Alternative banking and payment solutions are the way of the future. Another article corroborating this claim quotes the research firm, Packaged Facts, saying that approximately 40% of adults 18 years or older are unbanked.2 With this trend, we will continue seeing a shift away from traditional banking to “non-bank” funding accounts and reloadable prepaid cards.

Several non-traditional players have emerged, amongst them: Google, Paypal, and Amazon. We are excited for this new landscape of payment solutions, as it challenges the status quo and gives both consumers and merchants new options. When considering how you will choose to conduct business, consider your partners carefully. An article recently published in Forbes about the future of mobile payments stated, “Whoever ends up with controlling interests in this new digital ecosystem will reap billions in transaction fees, collect massive amounts of consumer data […].”3

Intevacon’s focus is to provide card processing services to our marketers so that you will be able to grow and protect your margins. Your success is our success. With Intevacon, you will always be in the center of your relationship with your customer. We are transparent and generous with our pricing model, and we offer the best customer service in the industry. Give us a call if you want to learn more about adopting a proprietary fleet card program through Intevacon. Now is the time to take back control of the transactions you are working so hard to achieve.

Contact us at 678-739-4450 or moreinfo@intevacon.com to get more information. http://www.Intevacon.com

 

  1. “Blowing Up the Bank.” CSP. April 2014. Web. April 2014. http://www.cspnet.com/industry-news-analysis/technology/articles/blowing-bank
  2. “General Merchandise: Prepaid & Financial Services 2014.” CSP. April 2014. Web. April 2014. http://www.cspnet.com/print/csp-magazine/article/general-merchandise-prepaid-financial-services-2014?page=0%2C0&utm_source=SilverpopMailing&utm_medium=email&utm_campaign=Daily%20News%2004-28-2014%20%281%29&utm_content=&spMailingID=45724913&spUserID=MjU0MDQ1OTk0MjkS1&spJobID=423296958&spReportId=NDIzMjk2OTU4S0
  3. “Can PayPal Beat Apple, Google, Amazon And Icahn In The Wallet Wars?” Forbes. March 2014. Web. March 2014.http://www.forbes.com/sites/stevenbertoni/2014/02/12/can-paypal-beat-apple-google-amazon-and-icahn-in-the-wallet-wars/

Margins for Growth with Intevacon

iStock_000009737415SmallIntevacon continues to grow each month in the number of customers who use our system and enjoy the benefits of a proprietary fleet card and prepaid card.  It looks like the industry in general is growing as well.  A Nielson study was published recently stating that the U.S. convenience store count increased by 1.4% in 2013, adding 2,062 stores.1,2  Probably even more striking, the convenience store industry has doubled in size over the last three decades. 1,2    This is not totally surprising considering that consumers increasingly view convenience stores as more than just an opportunity to purchase fuel.  Convenience stores satisfy the demands of on-the-go consumers with their ever-expanding product lines, from fresh foods to a myriad of beverages.  In total, convenience stores comprise 34.3% of all retail outlets according to Neilson. 1,2    Of these convenience stores, 62.8% of them are managed by single-store operators. 1,2

More good news for the convenience store industry—a study from Sageworks indicates that 2013 was a strong year for fuel profits at privately held gas stations, with net profits rising almost 3% on average.3  While this is a great trend, the study also noted that privately held gas station owners experienced very little profit from each gallon of gas because the margins tend to be so thin after factoring in the original wholesale cost, taxes, and swipe fees. 3   As a contrast, convenience store retailers have a lower net profit margin on average than most retailers, with the average privately held company across all industries averaging more than 8% net profit margin. 3   This low net profit margin experienced by marketers is yet another reason why Intevacon is excited to be growing.  We are able to offer an innovative and dependable system to our marketers without the high transaction fees that are typically associated with standard credit cards.  We succeed when our marketers succeed, and that is why we have created a pricing structure that allows for higher margins and keeps the marketer in control of his/her customers.

The convenience store industry comprises an invaluable place in our society.  Intevacon is proud to offer alternative payment solutions to our marketers, both in the form of fleet cards and prepaid cards.  We enjoy growing relationships throughout the industry, and we aim to support our customers through all of their successes with a system that is both flexible and innovative to their needs.

  1. “Convenience Store Count Tops 149,000.”  NACS. January 2014. Web. January 2014. http://www.nacsonline.com/News/Daily/Pages/ND0123132.aspx#.Uuqzt_uYV6s
  2. “Convenience Store Industry Adds More Than 2,000 Stores.” CSP.net. January 2014. Web. January 2014. http://www.cspnet.com/industry-news-analysis/corporate-news/articles/convenience-store-industry-adds-more-2000-stores
  3. “Fewer Expenses, Bigger Margins in 2013.” CSP.net. January 2014. Web. January 2014. http://www.cspnet.com/fuels-news-prices-analysis/fuels-analysis/articles/fewer-expenses-bigger-margins-2013

Contact us at 678-739-4450 or moreinfo@intevacon.com to get more information.  http://www.Intevacon.com

Recent NACS Article: “Gift Card Spending Surging”

An articlshutterstock_2943045e published today by NACS confirms what we have been hearing all year: Gift card spending has reached an all-time high.1  Now is the perfect time for marketers to introduce the Intevacon Prepaid Card.  Data continue to support consumer’s preference toward this product, both for personal use, as well as for gift-giving.    

The National Retail Federation conducted a survey indicating that 8 in 10 shoppers will purchase a gift card this holiday season, spending an average of $163.16 each2.  The most valuable piece of information for marketers is that 12% of shoppers will purchase gas station cards, up 11% from last year3.  You can find the article here, or review the highlights below.

  • Gift cards top the holiday wish list for the 7th year in a row, with 6 in 10 gift repie-chartcipients saying that they prefer to receive gift cards.3
  • The average amount that will be spent on each gift card is estimated to be $45.16, with individuals 65 and older spending an average of $175.96 and individuals 35-44 spending an average of $171.15.3 
  • Gift card choices will fall into the following categories: Department Store (40.3%), Restaurant (34.2%), Coffee Shop (19%), and Gas Station (12%).3

 

 

1.          “Gift Card Spending Surging.”  NACS. November 2013. Web. November 2013. http://www.nacsonline.com/News/Daily/Pages/ND1114133.aspx

2.         “Gift Cards.” National Retail Federation Retail Insight Center.  November 2013.  Web.  November 2013.  http://research.nrffoundation.com/Default.aspx?pg=9007#.UoT0BHEo6M8

3.         “Gift Card Spending Reaches All-Time High, According to NRF Survey.” National Retail Federation.  November 2013.  Web.  November 2013.  http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1694

*Data from National Retail Federation Survey