Introduction
EDP Technologies Corporation (“EDebitPay” or “EDP” or the “Company”) is a leading performance-based online affiliate and direct marketing services provider to the mass consumer market. The Company is a pioneer in the online financial services industry and is currently the largest online marketer of prepaid debit cards.
EDP is the only company successfully combining these three attractive characteristics:
- Addressing a large, target market: under-banked, under-served consumers.
- Providing products and services in high demand: prepaid debit cards and trusted continuity service.
- Leveraging the most effective distribution channel: online affiliate marketing networks.
Target Market
The Company’s products are targeted to the under-banked portion of the under-served market, which represents an estimated 45 million people earning over $580 billion annually. The Company is one of the original online prepaid debit card providers to the under-served market, and has established many processes that are now regarded as industry standards. The adoption of the Company’s products provides a unique channel by which to reach this market segment through the use of its affiliate marketing network.
Products and Services
EDP’s financial services and products provide customers “bank-like” functionality, including a convenient way to make purchases, telephone and online account monitoring, electronic transfers and direct deposit functionality.
Affiliate Network
The Company’s affiliate network, EDebitPay.net, is robust and highly diversified, consisting of other affiliate networks, affiliate marketers, independent and affiliated publishers, as well as online and offline list managers. EDP has relationships with the top 50 online affiliate networks and affiliate marketers in the U.S., encompassing tens of thousands of publishers that provide a powerful distribution channel for its products and services. The Company estimates that they are able to reach over 50 million unique users per month through their extensive affiliate network.
Monitization
The Company monetizes its opt-in consumer data through the following methods:
- Marketing its own services and third-party offerings through its affiliate network.
- Participating in revenue sharing programs with other online affiliate partners.
- Selling consumer profiles to offline list managers.
Key Success Factors
The growth of EDP’s proprietary offerings and success of its affiliate network can be attributed to the following factors:
- An efficient and effective channel to target an extremely valuable, under-served and under-banked sub-prime market.
- Strategic relationships established with MasterCard® and the attendant brand awareness and trust associated with this brand.
- Ownership and control over all aspects of EDP’s proprietary products and services.
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Business Model
EDebitPay uses its robust affiliate network, EDebitPay.net, to market its offerings through affiliate marketers, affiliate networks and publishers. The Company estimates that it reaches 50 million unique consumers per month through its network. Targeted consumers are directed to one of the Company’s card websites (landing pages) to complete an application and purchase a card. Upon the submission of an application, EDebitPay is immediately able to monetize all consumer data whether or not the application is accepted. Applications are accepted if they are properly completed, the consumers have sufficient funds and pass through EDebitPay’s security and identity checks.
Expand Third Party Offerings
Currently, EDebitPay markets AIG’s Identity Theft Insurance product through its affiliate network. The Company believes that the breadth of its marketing platform combined with the high attachment rates associated with the sale of debit cards provide the Company with an ideal platform for the marketing and sale of other financial services such as cash advances or auto loans.
Better Leverage of Consumer Usage Data
Through the tracking of its consumers’ purchases, the Company collects extremely valuable consumer spending habits. To date, EDP has not fully-exploited the leverage of this data throughout its marketing programs, either in aggregate or by individual consumer. As its marketing programs mature, the Company expects to realize significant benefit from this under-monetized asset.
Extend Marketing Channels
Currently, the Company markets its products and services exclusively online. The Company plans to explore other marketing channels for its proprietary products and services, such as direct mail, payroll cards and retail. The Company intends to explore several partnership opportunities to identify the potential of these distribution channels. |
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