TORONTO, March 4, 2013 /CNW/ - Home Trust, a wholly owned subsidiary of Home Capital Group Inc. (TSX: HCG), today announced that it has teamed up with SelectCore Ltd. ("SelectCore" or the "Company") (TSX-V: SCG) a leader in prepaid payment solutions, to offer corporate and public sector prepaid card and payment solutions through Visa Canada (NYSE: V) and MasterCard Canada (NYSE: MA).
The Canadian payments market is anticipating explosive growth as Canada shifts into the digital age and moves away from paper cheques and cash forms of payment. This new venture will enable SelectCore and Home Trust to harness this growth and capture marketshare.
Prepaid Visa and MasterCard cards will be a key driver in the evolution of cheque replacement - driving significant cost savings for government agencies, corporations and consumers alike. The Canadian Task Force for the Payments System Review has set forth recommendations to reduce the use of cheques by 80 percent. SelectCore and Home Trust are well positioned to address this market demand by leveraging our combined synergies of technology, infrastructure, capabilities and expertise.
The Canadian prepaid market is expected to grow to an estimated $19.2B in the next five years alone, with an addressable market surpassing $125B. Our focus will be on targeting emerging segments of the market that are expected to drive the majority of this anticipated growth, including government benefits, healthcare, payroll, travel and incentives.
"We are excited by the opportunity to enter this rapidly growing payments space," said Gerald M. Soloway, Chief Executive Officer, Home Trust. "By expanding our portfolio to include prepaid card solutions, we are further diversifying our business. We look forward to building and developing our relationship with SelectCore."
"As the incumbent provider of government disbursement solutions and a pioneer in the prepaid industry, our agreement with Home Trust reconfirms our leadership position in the Canadian marketplace," commented Keith McKenzie, President of SelectCore. "We are delighted to be working with one of Canada's leading alternative financial services companies."
About Home Capital and Home Trust
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposits, residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending and credit card services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SelectCore Ltd. (TSX-V: SCG) is a pioneer and leader in prepaid payment solutions for underserved markets. Founded in 1999, the Company offers a range of prepaid products and services from stored-value cards to mobile top-up that provide financial empowerment to a market of millions of under-banked consumers. SelectCore has been ranked among Canada's fastest growing companies by Profit Magazine four times in the past six years and was included in the 2011 Deloitte Technology Fast 500 list of North America's fastest-growing technology companies.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks related to the regulatory approval process, market and financing conditions as well as risks associated with the prepaid telecom and prepaid financial industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed in the Company's management's discussion and analysis for most recent financial reporting period, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information contained herein, except in accordance with applicable securities laws.
SOURCE Home Capital Group Inc.