Yesterday after the closing bell, Consorteum Holdings, Inc. announced that it has launched its mobile check cashing program. The service offers a more convenient way to cash payroll checks versus utilizing check cashing facilities.
After two years of development with the help of its partners, Consorteum has initiated the pilot phase of its check cashing program in the Toronto, Ontario region. The first stage of implementation will be the deployment on several trucks. The drivers will be able to offer their clients the expediency of real-time check cashing services, loading customer funds directly onto a personalized prepaid Credit Card right at the mobile truck’s location.
Quent Rickerby, President & COO of Consorteum Holdings Inc., stated, “Consorteum has been very eager to deploy this program and sees significant growth and opportunity within the check cashing industry. Not only are we bringing the convenience of a check cashing service to the customer directly, but we’re also mitigating the overhead costs of a brick-and-mortar store front.”
The company will derive revenue by charging a percentage of the value of the check for processing the transaction. Anticipated to be fully deployed across other regions of Ontario in early 2010, the program will generate significant transactional volumes for the company within a year. Consorteum plans to further expand the program into several U.S. regions in late 2010.
Rickerby added, “Today there are approximately 13,000 check cashing stores in the United States which collectively process $80 Billion worth of checks annually. The average payroll check today is anywhere from $500 to $600 each. With such a large market to capitalize, we anticipate the launch of this program to substantially increase our revenues as well as shareholder value.”
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