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Prepaid PIN Distribution via the Internet & the Cellular Retailer
Current Distribution Methods of Prepaid Airtime
The model for prepaid cellular service relies on self-imposed preset limits, in the form of prepaid
minutes that can be purchased to "top up" the subscriber's service. Prepaid minutes can be
purchased from almost anyone — not just cellular agents and retailers. Retail stores such as
Walmart and Target offer prepaid cards for major carriers. Convenience stores — from 7-11 to
your local "mom and pop" corner store — carry prepaid minutes for both cellular and long-
distance.
One common distribution method requires retailers to purchase an assorted inventory of plastic
cards that they stock on their store shelves. Consumers walk in, grab a plastic card from the
sales rack, and bring it to the point of sale for purchase. After purchase, the consumer will
scratch away at the card to reveal a PIN. The consumer is then given instructions on how to
enter this PIN to credit the account of his/her prepaid phone number. The PIN can be used only
once, and it holds the value of the denomination of card purchased. Once used, the card is
normally discarded, since it no longer serves any purpose.
A second common distribution method eliminates the plastic card distribution in lieu of a Point
of Sale Activation (POSA) machine. These machines look similar to a credit card terminal and
are used in a similar fashion. At the point of sale, the consumer tells the salesclerk the carrier
and denomination of card that he/she wishes to purchase. The salesclerk then collects payment
and enters that information into the POSA machine. The machine, then in turn, will either
generate a receipt with the PIN or an actual plastic card with the PIN.
Both of these distribution methods, however, have their flaws and present retailers with certain
distinct disadvantages:
- The need to purchase and stock plastic card inventory
- Associated Shipping Charges for the Inventory
- Rental/Service Fees for the POSA machines
- Inventory Shrinkage
- Employee Theft and Fraud
- Lack of Reporting and Tracking
A Better Alternative for Prepaid Distribution
A new, alternative method of prepaid distribution has come to market, however, that not only
addresses these flaws but also offers retailers huge benefits and added profitability due to its
design. This new alternative method is the digital distribution of PINs via the Internet. In this
method, retailers simply pull a PIN from their vendors' online Internet supply warehouses right
at the moment when a customer purchases the PIN from them at the point of sale. The whole
transaction can take place in just a few seconds and offers certain competitive advantages over
previous methods of distributing and selling prepaid PINs.
Advantage for Digital PIN Distribution: No Inventory
The major benefit for cellular retailers who opt to purchase and sell PINs via digital distribution
is the elimination of physical inventory for prepaid cards. With PINs available "on demand" via
the Internet, there is absolutely no need for cellular retailers to purchase a varied assortment of
prepaid plastic cards to stock their shelves. Better yet, because all PINs are available at all times,
retailers no longer have to play a guessing game in an attempt to discern which cards will be the
most popular and worthy of stock purchases.
Additionally, because the cellular retailers can purchase any prepaid PIN, at anytime, from
anywhere with an Internet connection, retailers can never run out of inventory for their most
popular cards. This ensures that they will always be able to make the sale for the most desired
PINs, and that their customers will always walk away happy.
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Questions? We have the answers!
Contact us today at 866.591.1311 (toll-free) or at 617.702.1100 or submit
an online request.
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