NetSpend 2010 Annual Report Download - page 11

Table of Contents
agreement through March 31, 2016. GPR cards distributed through ACE accounted for approximately 37.5% of our total revenues in 2010.
Corporate Employer Distribution
As of December 31, 2010, we marketed our GPR cards through approximately 800 corporate employers. These employers promote
our GPR card to their underbanked employees as an alternative method of wage payment, allowing their employees to receive their wages on
their GPR cards through direct deposit rather than a paper check and allowing the employers to avoid the costs associated with distributing
paper checks. The corporate employers through which we market our GPR cards include Kohl's, Macy's, TravelCenters of America, Church's
Chicken, Starwood Hotels & Resorts Worldwide and Hospital Corporation of America.
Direct Distribution
We also market our cards directly to consumers through direct-to-consumer and online marketing programs. We have developed
proprietary systems for optimizing the placement of information regarding our products on the Internet through affiliate marketing and search
optimization, and for identifying consumers likely to be receptive to offers to apply for our GPR cards.
Reload Network
As of December 31, 2010, we offered reload services through approximately 500 retailers at over 100,000 locations in the U.S. Our reload
network is designed to provide convenient ways for our cardholders to add more funds to their cards, to provide our retail distributors with
additional opportunities to earn revenue by providing services to our cardholders and to supplement our core GPR card revenues. Retailers
typically collect a fee in connection with the reload of our GPR cards and we are entitled to a portion of such fee only with respect to some of
such retailers. We do not process reloads of other providers and therefore none of our revenues are derived from reloads of cards offered by
other prepaid debit card companies. Our reload network is comprised of all of the alternative financial services provider locations and
traditional retail locations that market our GPR cards, as well as all MoneyGram and Western Union agent locations and all Safeway grocery
stores. In addition, we have entered into a contractual relationships with Interactive Communications International, or InComm, to offer reload
services through certain InComm agents.
Sales and Marketing
Our sales force is comprised of business development and key account management professionals responsible for developing and
maintaining our relationships with our retail distributors, online marketers and corporate employers. Our marketing staff is comprised of
product, channel and functional marketing professionals focused on cardholder acquisitions, deepening usage and retention for us and our retail
distributors and corporate employers. We principally market our cards under the NetSpend and Skylight brands and in many cases have co-
branding relationships with our retail distributors. Our marketing programs focus principally on direct deposit enrollment and cardholder
lifetime value optimization.
Operations
The NetSpend Platform
We fully integrate our program management and transaction processing operations into a single proprietary platform. Our end-to-end
operational and technology platform encompasses the critical functions required for us to acquire cardholders, process transactions, maintain
account-level balance data, communicate with cardholders, manage risk and ensure regulatory compliance and communicate
7