LODI, Calif., Sept. 1, 2004 (PRIMEZONE) -- PayStar Corporation (Pink Sheets:PYST), one of the nation's growing providers of stored value debit cards, announced today the signing of an LOI between PayStar's GLOBALCash division and Online Company Records, LLC (OCR). The companies will jointly market GLOBALCash's prepaid ATM debit cards to OCR's nearly 250,000 financially underserved and unbanked customers. OCR provides "Acceptance Card" catalog programs for vendor specific products and services which allow consumers to purchase items on terms without financial credit history.
This agreement is scheduled to consummate before the end of the third Quarter. At which time GLOBALCash and Online Company Records will begin marketing to all 250,000 customers a Co-branded prepaid ATM debit card. OCR estimates 40-50,000 signups in the first 90 days. The card will be marketed at $19.95 with a $4.95 monthly recurring fee. GLOBALCash and OCR will revenue-share in the ongoing monthly cardholder transaction fees.
"This niche marketing opportunity continues our nationwide Retail card expansion program," stated William D. Yotty, Chairman and CEO, PayStar Corporation. "And when coupled with our recent announcement of joint-marketing with Community Banks and Credit Unions, this OCR program will significantly enhance the division's revenues in 4Q this year."
About PayStar
PayStar Corporation (www.paystar.com) provides its distributors and clients with a suite of prepaid, stored value products. PayStar's GLOBALCash, Inc. (www.globalcash.us) distributes prepaid ATM debit and stored value cards that can be used just like regular credit cards. Prepaid ATM debit cards can be used everywhere major credit cards are accepted (stores, restaurants, theaters) and online. PayStar is a partner in a prepaid ATM debit card for a national government project that will enable millions of underserved and subsidized housing individuals' access to prepaid ATM debit cards. PayStar's corporate and distributor sales, as well as mergers and acquisitions, will continue to drive growth.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of known and unknown risks and uncertainties that may cause the company's actual results or outcome to be materially different from those anticipated and discussed herein. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks with the regulation of the telecommunications industry.