Addison, TX 75001, US
Business Products & Services
The U.S. gift and incentive card market is projected to top $138 Billion in 2015 with $40 Billion being spent on “open loop” gift and incentive cards, cards issued by Visa, MC and Amex that can be used anywhere those brands are accepted. CardLab, Inc., a Delaware corporation (“CardLab” or the “Company”), has risen to be a top 25 provider of Visa Incentive Cards with an accelerating growth rate nearing 100% year over year.
The Company has tempered growth in the past due to the economics associated with incentive cards, which delay revenue and cash-flow for a minimum of seven months after the actual sale of the cards, when unused funds can be captured via fees. The delay in revenue and cash-flow created a need for additional capital as the growth rate of the business accelerated.
Today, the Company is migrating to a new method of recognizing cash-flow and revenue from breakage called “derecognition”. Derecognition, explained in greater detail further in this memorandum, addresses the Company’s need for additional capital as growth rates accelerate and provides a clearer view of the Company’s profit and loss statement by aligning revenues with expenses.
In addition, CardLab has started pursuing high-volume incentive card opportunities by leveraging our existing 4,500+ corporate “transactional” relationships, partnering with rebate and corporate incentive companies, and building a sales team to aggressively communicate CardLab’s unique Visa Incentive Card solution. The Company recently hired a seasoned and proven sales executive to build a sales team and the team has already closed business valued at $1.4MM in annual gross profit.
Our flagship online storefronts, GiftCard.com and IncentiveCardLab.com, continue to experience traffic growth and establish brand equity, firmly positioning CardLab as a leading online retailer of gift and incentive cards.
Products / Services
Visa Incentive card
Our current offering is a Visa Incentive Card, which can be customized with a corporate logo, product or brand, and is sold for a retail price of $5.95 plus the face value of the card; volume discounts are offered. If a client does not want to customize the card, they may also choose from a gallery of over 1,000 predesigned cards. Our Visa Incentive Card comes standard with a choice of greeting cards to which the Visa card is affixed. Cards can be bulked shipped to the client or direct to the recipient with a variety of shipping options.
Chief Executive Officer
Mr. Jones’ background has been primarily in the payments and electronic commerce industries in which he has over fifteen years of experience. Most recently, Mr. Jones served as Vice President of Corporate Development at Fiserv, Inc., where he led payment strategy and payment related M&A while also holding responsibility for BillMatrix merger integration. Prior to BillMatrix and Fiserv, David served as Remittance Product Group Head & Vice President of Payment Strategy for JP Morgan Chase. Prior to joining Bank One/JP Morgan, David founded and served as Executive Vice President of Billserv, a leading electronic bill presentment and payment (EBPP) provider. David holds an Executive MBA from the Cox School of Business at SMU.
Mr. Holbert joined CardLab in 2013 with over 25 years of sales and leadership experience in the incentives industry. He is responsible for the revenue growth of the organization, building and maintaining a solutions sales organization and expanding the Company’s reach into new industry segments and programs. Prior to joining CardLab, Mr. Holbert served as Executive Vice President of Sales for Parago, a leading rebate and incentive company. Prior to joining Parago, Mr. Holbert worked with some of the nation’s leading incentive companies including MotivAction, LLC, BI Performance, Maritz Inc. and Marketing Innovators International.