Atlanta, GA, September 25, 2007 --(PR.com
)-- Directo, a leading provider of paycards for unbanked consumers, announces significant growth in 2007.
Through the second quarter, new accounts grew 42%, revenues increased 37.7% and profit rose 158% over the previous year. Each month showed revenue increases over the same periods in 2006 reflecting Directo’s strong and consistent growth.
Fueling Directo’s growth is the increasing acceptance of paycards by clients with a significant number of unbanked employees. Media coverage of the unbanked has driven awareness of the liabilities associated with check issuance, including check fraud and the inefficiencies of distributing checks to service industry employees who work in a variety of locations outside of an office environment. In particular, staffing companies have fueled Directo’s growth because Directo solutions address their specific needs efficiently and cost-effectively.
Banking channel partners, offering the firm’s solutions to their customers have also significantly contributed to Directo’s success as they recognize the benefits of Directo’s programs to their business clients.
Bob Howe, President and CEO of Directo, attributes the growth to several key factors. “In general, the payroll industry is educating its constituency about the merits of paycards. More and more decision-makers are eliminating the loss of productivity due to check distribution and cashing. Recent studies have found that cash-based consumers think more favorably about companies that offer payroll cards to their employees. Couple that with the simplicity and flexibility of our programs, our streamlined implementation process and outstanding customer support and we have a very powerful solution for small to mid-size service companies.”
Another contributing factor is the banking industry’s continuing battle with check fraud. Directo has become the trusted source for bankers who have promoted the firm’s programs to their own customers.
Added Howe, “Our best source of growth has come from referrals, which, of course is the best type of marketing we can do. As more companies become familiar with our programs and see how they positively impact employee productivity while simplifying their employees’ lives, we fully expect Directo’s aggressive growth to continue in the future.”
About Directo, Inc.
Directo is the service leader in providing pay cards to America’s unbanked consumers, providing a safe, economical way for unbanked consumers to get their pay via FDIC-insured accounts while allowing them access to direct deposit participation, no check-cashing fees and year-round, 24-hour a day access to money via the ATM network and at retail POS terminals. Serving the unbanked is Directo's entire focus. The company partners with staffing firms, banks, payroll companies and associations that seek to widen their offering to encapsulate a new customer base. Employers benefit from reduced payroll costs and increased employee retention. Customer segments served include construction services, staffing, agriculture, hospitality, retail, food services and other service industries. For more information, visit directocard.com.