RegaloCard, a mobile payments company based in Florida, announced that it has closed a $7 Million round of financing from Dublin Ventures and Kinsail Corporation. The company offers a prepaid gift card that is a free an instant alternative to money transfer services.
In a press release dated January 4, 2010, RegaloCard provided details of the financing and described their expansion plans as follows:
RegaloCard is currently available at test market locations in the US, and in the coming months will be available at thousands of retail locations across the country through a group of major US distributors which have agreed to distribute RegaloCard nationwide. RegaloCard, while initially focusing on the US Hispanic market, plans to expand the service to other regions in the near future that have a large number of immigrants residing in the US.
Here’s how the RegaloCard prepaid gift card system works.
A sender (typically in the U.S.), purchases a RegaloCard (such as a $100 gift card). A PIN, which is used to redeem the value on the gift card, is sent to a recipient (such as a family member in Latin America). The recipient then uses the PIN to access the funds. The PIN is sent using a mobile phone application so the recipient receives the PIN immediately.
As we understand it, the RegaloCard is a gift card, not a reloadable open-loop network branded card. As such, the recipient can only use the funds at the sponsoring retailer’s locations. However, RegaloCard claims that
RegaloCards are available from the best known retail brands in country allowing consumers to choose from brands they know and love and have grown up with in their home country.
The press release is available here.