BERKELEY, Calif., March 25, 2009 -- Rixty ( www.rixty.com) today announced its relationship with Coinstar to support the rollout of Rixty’s cash-based payment system for online entertainment. Rixty will leverage Coinstar’s nationwide reach to enable users to take cash and coin to a local retailer and convert it into online purchasing power.
Today’s teens are spending more time than ever before consuming online entertainment. A recent Pew survey found that 97% of all teens play some type of online game. Many teens have money to spend online, but lack a convenient and cost effective“way to pay.” Coinstar estimates that there is $10 billion in loose change sitting idle in homes across the U.S., averaging out to more than $90 per household. Rixty is embracing the opportunity to put that coin to work through the relationship with Coinstar, which facilitates the transfer of teen spending to the online channel.
Rixty’s payment system enables teens to spend their cash online as easily as at the local shopping mall. Users will be able to easily convert their coins to a voucher at more than 10,000 Coinstar kiosk locations. A unique pin number issued via the voucher can then be used to add value to their Rixty account. Additionally, users will be able to purchase a Rixty pre-paid card linked to their account from Coinstar retail locations across the country. Rixty doesn’t charge users any fees, so 100% of cash&coin deposits and prepaid card purchases go directly to a user’s Rixty account, giving them a cost effective way to take total control of their online entertainment spending.
“Today, a sixteen year old with $20 in his pocket can spend that money on anything he wants at a local store. Rixty believes he should have that same freedom online. No other online payment system addresses the teen payment challenge as completely,” said Ted Sorom, Chief Executive Officer, Rixty.“We’re thrilled to have a local presence through our Coinstar partnership that will allow teens to connect to the world of online entertainment,” adds Sorom.
Rixty’s payment system is designed to support today’s newest online business models from virtual goods and microtransactions to monthly subscriptions. The Rixty API makes it simple for online merchants of any size to begin accepting payments from their users who lack credit cards and other online payment methods, giving merchants a new revenue stream from their current users.
Rixty will launch its service online in May, 2009.
Rixty is an alternative payment system designed specifically for today’s online youth, empowering them to take control of their entertainment spending and giving them access to the online world of MMO (Massively Multiplayer Online) games, downloadable games, virtual worlds, social networks, digital downloads, mobile games, and ringtones. Rixty never charges users fees and by reducing payment friction, Rixty converts more users into paying customers, significantly increasing retailer revenues. For more information, visit www.rixty.com.
About Coinstar, Inc.
Coinstar, Inc. (NASDAQ:CSTR) is a multi-national company offering a range of 4th Wall® solutions for the retailers' front of store consisting of self-service coin counting, DVD rental, money transfer, electronic payment solutions, and entertainment services. The Company's products and services can be found at more than 90,000 points of presence including supermarkets, drug stores, mass merchants, financial institutions, convenience stores, restaurants and money transfer agent locations. For more information, visit www.coinstar.com.
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