Electronic Pin Delivery System
This TIGO display sign says "TIGO Buy Here" but the hand written note says
"WE DON'T HAVE CARDS"
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Electronic Pin delivery Systems in Latin America and similar
emerging markets is a potentially booming industry, in countries
where most of the population use prepaid telephones. Right now
Millions of prepaid cards are sold in Latin America.
Distribution is a big and expensive problem for traditional card
distribution, first of all the cards have an inherit cost to manufacture
and preprogrammed into the telephone system and then it enters a
chain of distribution and sub distribution that is plagued with theft,
robbery, security expenses to keep this "almost cash" inventory
behind lock and key. Then it must be physically distribute to different
points in the country.
With electronically distributed PINS this is all eliminated because the
PINS are housed in a secured server where it is encrypted for the
protection of the PIN then it is delivered over the Internet and finally
decrypted and printed on a point of sale printer at the point of sale.
With electronically delivered pins your "time-to-market" of the PINS is
instantly since once the pines are in the server they are available for
ALL the distribution chain at the same time. Also You can sell more
with less inventory since it is a shared inventory for everyone in the
distribution chain and of course all cost of distribution downsized to
just a simple hosting on a server.
From a business point of view this is a great opportunity to sell
electronic content for many services, for example, Parking permit
slips, Fixed telephony, public telephone cards, electricity, gas and
many other services and products and all these can be distributed
over the same electronic distribution system.
The key to success is a high volume throughput system that allows
you to make money per transaction based on a commission per
transaction. Once you achieve your volume based on market
demands for the prepaid service the system is able to generate
natural sales for the PINS that are stored in a virtual inventory.
Every country that has prepaid telephony depending on the cell
phone population is the growth potential. Honduras being a relative
small country with a relative small number of prepaid telephones at
1.4 million is however potentially a very profitable market because of
the lack of electronic delivery systems in the country with an
aggressive growth rate of the telephone population (it is expected to
double in the next 2 years)
