Latest Debt News
April 2008 :: The
Emergence of the Smarter Spender – Are Overdrafts A Thing Of The Past?
One in five
people want to dig themselves out of debt in the next 12 months. This
shifting attitude was revealed in research conducted by the Pre-pay market
leader Tuxedo Money Solutions and shows the extent to which people are
prepared to go, to get their finances back in shape.
The study of over 1,000 people in the UK also revealed some interesting
shopping trends and a growing penchant for smarter spending.
Over 70% of those surveyed said they had bought second hand products
within the last six months and were very proud of the fact. One in two
people said they were far less brand conscious and 65% said they were much
more inclined to shop around to compare prices.
The emergence of this “Smarter Spender” mirrors developments within
consumer society and partly explains the growth of pre-paid cards across
Europe. Latest figures available show there will be around 2.3 billion
pre-paid transactions taking place in Europe in 2010 involving a spend
exceeding £50.7 billion, and that pre-paid card usage will increase by a
further 110% over the next five years¹.
A Tuxedo MasterCard® or Tuxedo Maestro prepaid card is easy to use and
offers the same convenience of a credit or debit card. The difference is
that the money available in your prepaid ‘eccount®’ is the money you have
to spend. This means there is no risk of an overdraft or running into
debt. There are no credit checks and no interest to pay and you stay in
complete control of your finances.
You can use a Tuxedo Card to make purchases wherever MasterCard® or Tuxedo
Maestro is accepted - that’s over 25 million locations worldwide. You can
also make secure transactions by phone or over the internet. In addition
you have the ability to withdraw your money from cash machines (ATMs)
worldwide.
With an estimated 3.5 million people expected to have a credit card debt
of more than £1,812², it is no surprise that pre-pay cards like Tuxedo’s
are viewed as a smarter option.
Archived Debt News
January 2007
::
The Sunday Times – New smart card called Tuxedo
A PREPAID banking and money-transfer card aimed specifically at recent
immigrants will be launched this week. Tuxedo, a creation of the original
management and backers of the Alpha Telecom prepaid phone-card company,
will serve as a cheap bank account and money-transfer service once it is
loaded up with cash. The card will cost £9.95, and holders will be able to
give a matching card to family or friends overseas, allowing them to make
cash withdrawals or pay for goods without having to spend on money
transfers.
March 2007 :: The
Independent On Sunday – Debit cards on offer – no bank needed
Immigrants to the UK will be able to use a debit card without the need to
open a bank account.
Tuxedo, a new company set up by Ali Sarikhani, the entrepreneur who
founded Alpha Telecom, is to launch a new "Blue Diamond" debit card
supported by Mastercard.
Immigrants and others among the six million people in the UK who do not
have a current account will be able to top up the card with cash at
branches of Barclays Bank and the Post Office.
The card can also be used to transfer money overseas and the backers of
Tuxedo hope to undercut traditional wire companies such as Western Union
and MoneyGram.
The Blue Diamond card will be heavily marketed at key immigrant arrival
points in the UK such as Victoria bus station in London. It will also be
advertised in places such as Poland and Bulgaria - countries of origin to
huge numbers of immigrants to the UK. It is estimated that 1,000 economic
migrants arrive in the UK from Eastern Europe every day.
The card will work at nearly all ATMs at a cost of up to £1.50 each time.
It will be sold at shops and will cost £9.95. The card will be free to pay
for goods in stores and its founders claim it can be used in nine million
locations in over 100 countries.
Holders of the Blue Diamond card will not be required to have a bank
account and will not be subject to credit checks.
Mr Sarikhani was born in Tehran but moved to the UK in 1979. He grew Alpha
Telecom from a £6m business to a £60m company in 18 months before selling
it in 2003. He is also a Labour supporter and donated £10,000 to the party
in 2001.
March 2007 :: The
Observer – Business & Media – Cash on cards for migrants
A new company plans to make money from economic migrants arriving in
Britain by providing them with a debit card that can be used to withdraw
cash from foreign bank accounts.
Tuxedo Money Solutions, which is backed by Ali Sarikhani, a British
businessman born in Iran, is about to launch the product, called Tuxedo.
It can also be loaded up in exchange for cash paid in at leading banks and
building societies, and then used to purchase goods and services
throughout the country. Cardholders can use it as a cashpoint card to
withdraw money from ATMs.
It is backed by Maestro, a division of Mastercard, and licensed by the
Financial Services Authority. Tuxedo intends to hand out application forms
for the card at towns and cities where immigrants arrive. It will target
eastern European workers and those from further afield, including the
Indian subcontinent and the Far East. Many are paid in cash and find it
difficult to open UK bank accounts, or are reluctant to do so - partly
because some want to avoid tax.
Tuxedo will charge a small fee for each transaction. It claims that the
average migrant has an annual disposable income of around £5,000. Around
4.9 million people born overseas live in the UK, although the card will be
aimed at the minority who have arrived recently.
Net immigration is about 130,000 per year according to the government, but
the true figure is probably far higher. |
