Emerchants, Cash Converters launch trial

Payment solutions provider Emerchants has signed a three-month trial agreement with Perth-based Cash Converters International for the distribution of prepaid debit cards at the second-hand dealer's network of stores. 

Under the terms of the deal, loans will be distributed on prepaid debit cards rather than solely in cash form, reducing the amount of cash required to be held at stores and providing customers with instant funds.

Emerchants will provide Cash Converters with fully reloadable Visa prepaid debit cards, while Cash Converters will act as an authorised representative of Emerchants.

"We are excited to undertake this trial with Cash Converters and test the consumer acceptance of loans loaded to a card, either in full or in part, rather than solely in cash," Emerchants managing director Tom Cregan said.

"At this stage, we will conclude the pilot at the end of January 2014 and we then expect Cash Converters to undertake a period of review and analysis of this pilot."

Cash Converters has 140 stores throughout Australia and more than 700 stores worldwide. 

Emerchants shares were 7.2 per cent higher at 52 cents at 9:25AM WST, while Cash Converters shares were 0.6 per cent lower at $1.19.