RE: RE: 3 cents is possible hereSCG is not the pick of the litter. They have a dying prepaid phone card business that generates all their revs. They have been pumping their debit card for a year with no announced number of cardholders. Made a big deal of expanding to the US but still no announced numbers of cards issued. I think the prepaid phone card base of customers is great to cross sell to but totally unknown as far as their success or failure at the debit card business.
Mint has actual customers. They just doubled their customer base to 400,000. I doubt SCG has 20,000 actual active prepaid cardholders. The turnover rate for prepaid cards is very high unless you have a recurring direct deposit. Many will buy the card, load it once and then not reload it. The recurring deposit, like a payroll or government pension, ensures continued usage and fees for the issuing company. Mint customers rely on the card to get their paychecks and spend money for every day life so it's used all the time. If they can expand that relationship to include the lucrative money transfer business, they can expand their margins dramatically.
I used to own SCG but sold because they had great PR's about what they were gonna do but never told us what they had actually done. They may end up being a huge success and the stock has been a resounding win for early holders but too much of a black hole for me. Mint mgmt has been much more transparent and clear about their mission and concrete steps to increase business.
BTW they told me that they sold their Canadian prepaid debit card business because there wasn't enough demand for the product to make it profitable. Maybe that' s why SCG hasn't announced any actual results.