MAGICPINS.COM PLATFORM ADDS VALUE FOR MASTER AGENTS AND WHOLESALERS WHO ADOPT IT
May 01, 2008 (PRLEAP.COM) Technology NewsPHILADELPHIA, May 1, 2008 - Magicpins.com, a leader in b2b e-commerce systems for distribution of prepaid wireless refills, is offering master agents and wholesalers their platform to process pins and sign up their own dealers, thus allowing them to build financial value. Magicpins recently signed Paterson Electronics, a wholesaler based in Paterson, NJ with a prepaid coupons distribution operation, to use Magicpins’ proprietary platform to dispense refill coupons and e-pins.
In December, Magicpins.com began offering its platform to master distributors who want to sell pins electronically to their dealer base. Magicpins now has an impressive breadth of customers and early results are encouraging.
Interest in becoming a pin processor is coming from a variety of sectors including wireless master agents, wholesalers and ISO’s who sell wireless refill and prepaid long distance cards. These companies realize they can increase their margins and reduce their cost of doing business by selling refill coupons in electronic format instead of physical cards.
By implementing Pin processing, wholesalers, master agents and ISO’s can process their own transactions, as well as sign up a network of sub-distributors and dealers. The Magicpins platform actually transfers the long term value of the distribution network to them. “If you have a dealer base, you should have your own platform, sign up dealers and process the pins yourself so that you create a value for your company,” said Anurag Jain, President of Magicpins.
In the past, wholesalers who had been distributing physical cards had very few options to sell e-pins to their retail locations. The first option was to sign up all the retail locations to a third party processing company and the second option was to build up the infrastructure for processing e-pins in-house. Fear of losing their retail location to a third party processing company kept the master agents away from the first option and the costs & risks associated with developing a pin processing solution in-house kept most of the wholesalers from graduating to selling virtual inventory of refill coupons.
Paterson Electronics evaluated the options to build their own platform versus buying the pin processing platform from Magicpins and decided to go with Magicpins because it was turning out to be more cost effective. More importantly, the Magicpins platform—which is a much more mature and functional platform—was ready for use on day one. Paterson Electronics was ready to sign up customers on the platform within two weeks from signing up with Magicpins.
Jay Atiyat, president of Paterson Electronics, said the results have been very positive so far. “Adopting Magicpins’ platform allows us to sign our own dealers and avoid paying a commission to a third party,” he said. “We expect our revenue to increase dramatically as a result of using this platform and, most importantly, we do not have to give out information of our doors to a third party.”
“Now that we have our own platform, we can carry calling cards and any other prepaid products which our customers need,” added Atiyat.
For Paterson Electronics, Magicpins has hosted the platform on their servers and is also providing the maintenance services so that Paterson doesn’t have to worry about any technical aspect of the business. This worked out well for Paterson given their limited technical expertise and resources. Magicpins is providing the technical support services so that master agents don’t have to hire technical workers, enabling agents to focus on their business. “We are open to the idea of the master agents buying the platform from us and hosting the platform on their own servers,” Jain said. “For agents who are comfortable in hosting the application and maintaining the servers, they can host it on their servers.”
About Magicpins.com, LLC
Philadelphia-based Magicpins is a fast growth company in the prepaid wireless industry. Since 2005, Magicpins had triple digit sales growth each year. Magicpins offers a variety of prepaid wireless products and services for retailers in the most efficient manner from the carriers and providers. Magicpins’ solid relationships with the carriers, expertise in prepaid wireless distribution and Information Technology distinguish the company from its competitors—Magicpins offers the best quality packages to retailers. In business for three years, the firm’s IT enabled processes keep the logistic cost low, thereby providing the highest margins to retailers. www.magicpins.com