La Junta, Colo. Embraces Mobile Payments
PALO ALTO, Calif.-(Business Wire)-September 29, 2009 - La Junta, Colo.-based The State Bank went live on May 21 with Redi Pay Bling, its bank-branded version of Bling Nation’s mobile payments network. The network enables banks and merchants to avoid global network costs and keep money within the community through a secure local debit network.
“We have been blown away by how quickly the La Junta community has embraced mobile payments from physically tapping their phones to make a payment instead of pulling out their wallets to understanding the tangible benefits of a local payments network,” said Brad Rose, vice president of Information Technology and Security for The State Bank. “In the first 90 days, we acquired 23 new business accounts as a result of offering mobile payments – twice as many we had in the two previous years. Redi Pay Bling transaction volume currently occupies more than 20 percent of The State Bank’s local debit transaction volume.”
In just over four months, The State Bank has seen more than 80 percent of the bank’s active debit card customers in the target market activate a BlingTag. It took almost a decade for the bank to see similar adoption of standard credit and debit card networks among its customers. The State Bank has also experienced more than 50 percent penetration among its target merchants.
“Merchants that have enrolled in Redi Pay Bling are seeing higher BlingTag transaction volumes than debit transactions, which demonstrates that the residents of La Junta enjoy paying with their phones,” continued Rose. “Right now, our customers are making about five transactions per month with their phones, and the number is growing.”
Since the implementation of Redi Pay Bling, The State Bank has not received any reports of fraud or lost BlingTags. Consumers are free to use mobile payments at a wide variety of merchants, including restaurants, convenience stores, salons, automotive repair shops, veterinary clinics and wireless providers.
“When Bling Nation began work in La Junta, we were confident The State Bank could lead the charge for mobile payments,” said Wences Casares, co-CEO of Bling Nation. “What we did not foresee was the incredible and speedy adoption rates of mobile payments by consumers and merchants alike. To date, 62 percent of The State Bank’s active debit account users have transacted with a BlingTag, and we expect that number to continue rising. The State Bank has worked closely with us to ensure a successful launch, and we are impressed with the commitment of their staff to making Redi Pay Bling a preferred payment mechanism. La Junta is quickly becoming the epicenter of mobile payments in use.”
Bling Nation’s core technology is an integrated issuing and acquiring platform designed specifically for local and regional banks. Through its mobile payments network, Bling Nation enables financial institutions to more profitably support payments between their local demand deposit account (DDA) customers and their merchant customers by bypassing the current global debit payment model with an efficient, cost-effective and local payment network.
About State Bank of La Junta
Established in 1893, La Junta, Colo.-based The State Bank ($97 million in assets) provides mobile payments, online banking, investment, account management and loan services to individual and commercial customers in southwest Colorado. The La Junta branch is one of three within the Colorado State Bank family, which includes branches in Falcon and Rocky Ford. The three banks offer six 24-hour ATM locations. For more information, visit www.redibank.com.
About Bling Nation
Bling Nation brings mobile payments to consumers and merchant points of sale, offering lower costs, increased efficiency and improved security compared to credit cards, debit cards, checks and cash. Its Community Payments Service creates a local payments network between financial institutions, consumers and merchants. Bling Nation also enables financial institutions and merchants to offer consumers robust rewards programs and real-time redemptions, promoting loyalty and convenience and supporting “shop local” initiatives.
For additional information, visit www.blingnation.com.
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