Prepaid telecom services will dominate the United States market reflecting the current telecom market in Europe, where an estimated 75% of wireless accounts are prepaid.
In fact, prepaid wireless is expected to be the quickest growing segment of the US. Telecom sector over the next few years.
Prepaid services tend to be more efficient than postpaid services since:
• They do not involve credit risks
• Have no statement fees
• Have lower customer service costs
Efficiencies in the marketplace are bound to prevail, making prepaid the cost effective alternative demanded by consumers in all walks of life.
Research firm Killen & Associates estimates that stored value bank and phone card transactions will reach 43 billion by 2005.
The competitive threat of converged POS devices affects everyone in the processing & prepaid industry. Merchants are bound to adopt POS solutions that process cards and sell services, thereby maximizing earning potential for minimal counter space.