CoinStar is testing financial services kiosks that let people buy prepaid gift cards or e-certificates with a swipe of their debit card or with cash.
The pilot program, which is just underway, lets consumers buy up to nine different prepaid cards from such brands as Starbucks, Pier One, iTunes and Circuit City, and up to 25 e-certificates from other retailers.
Instead of exchanging coins for gift cards, the new CoinStar system accepts cash or debits cards. Any card bought from the machines are loaded with the desired amount of money and activated. Certain cards can also be reloaded, Robert H. Baker, Jr., vice president of financial services for CoinStar, said.
“It’s convenience,” Baker said. “Consumers are very comfortable with self service. This is just another option.”
Participating retailers will receive a certain percentage of the fees CoinStar earns from the kiosks, as well incremental foot traffic, he added.
The program is rolling out now, and will soon be available in specialty retailers, transit centers, airports, banks and subway terminals, Baker said. Next year, CoinStar plans to add new layers to the program, including a bill pay option that will let people pay certain bills through the system.
CoinStar will work with companies to offer bill pay options specific to the region where the kiosk is located, Baker said.
The new kiosks will complement the company’s original cash for cards CoinStar machines, which are available in 13,000 locations.
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