About PaySign

Paysign, Inc. (Paysign) operates as a vertically integrated provider of prepaid card products and processing services for corporate, consumer and government applications. The company’s payment solutions are utilized by its corporate customers as a means to increase customer loyalty, increase patient adherence rates, reduce administration costs and streamline operations. Public sector organizations can utilize the company’s payment solutions to disburse public benefits or for internal payments. The company markets its prepaid card solutions under the company’s Paysign brand. As the company is a payment processor and prepaid card program manager, the company derives its revenue from all stages of the prepaid card lifecycle. The company provides a card processing platform consisting of proprietary systems and software applications based on the unique needs of the company’s clients. The company has extended its processing business capabilities through the company’s proprietary Paysign platform. Through the Paysign platform, the company provides a variety of services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service. The Paysign platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform’s flexibility and ease of customization has allowed the company to expand its operational capabilities by facilitating its entry into new markets within the payments space. The Paysign platform delivers cost benefits and revenue building opportunities to the company’s partners. The company has developed prepaid card programs for corporate incentive and rewards, including but not limited to, consumer rebates and rewards, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance. The company has expanded its product offerings to include additional corporate incentive products and demand deposit accounts accessible with a debit card. In 2022, the company also expanded its product offerings into payroll cards, retail disbursement cards and gift card distribution. In the future, the company expects to further expand its product offerings into other prepaid card offerings, such as travel cards and expense reimbursement cards. The company’s cards are sponsored by its issuing bank partners. The company’s revenues include fees generated from cardholder fees, interchange, card program management fees, transaction claims processing fees, and settlement income. Revenue from cardholder fees, interchange, card program management fees, and transaction claims processing fees is recorded when the performance obligation is fulfilled. Settlement income is recorded at the expiration of the card program. Products and Services As a payment processor and prepaid card program manager, the company’s payment solutions are utilized by the company’s customers as a means to increase customer loyalty, increase brand recognition, reward customers, agents and employees while reducing administration costs and streamlining operations. The company manages all aspects of the prepaid card lifecycle, from managing the card design and approval processes with partners and networks, to production, packaging, distribution, and personalization. The company also oversees inventory and security controls, renewals, lost and stolen card management, and replacement. The company deploys a fully staffed, in-house customer service department which utilizes bilingual customer service representatives, interactive voice response (‘IVR’), and two-way short message service (‘SMS’) messaging and text alerts. As the company does not have its own banking license to issue open-loop prepaid cards, the company’s cards are offered to end users through the company’s relationships with bank issuers. As an end-to-end payment processor and prepaid card program manager, the company derives its revenue from all stages of the card lifecycle. These revenues can include fees from program set-up; customization and development; data processing and report generation; card production and fulfillment; transaction fees derived from card usage; inactivity fees; card replacement fees; program administration fees; and settlement income. As of December 31, 2022, the company had issued millions of prepaid cards under programs implemented for Fortune 500 companies, multinationals, as well as top pharmaceutical manufacturers, universities and social media companies. As of December 31, 2022, the company had approximately 5.3 million cardholders participating in approximately 550 card programs. The company focuses mainly on providing co-pay assistance prepaid cards to the pharmaceutical industry. In 2011, the company began marketing a corporate incentive prepaid card-based payment solution targeting the plasma donation industry. More recently, having built the necessary infrastructure and added essential staff, the company has increased its focus and sales efforts on disbursement programs, corporate incentive and expense card programs, as well as retargeting the pharmaceutical industry with co-pay assistance, buy and bill and other prepaid programs designed to maximize patient enrollment, adherence and retention. The Paysign Brand In order to leverage the capabilities of the Paysign platform and successfully expand the company’s product offerings, the company established the Paysign brand of prepaid cards and solutions. The Paysign brand encompasses all of the company’s prepaid product offerings, including but not limited to, corporate incentives, healthcare related payment solutions for clinical trials, donations and co-pay assistance, payroll, disbursement payments, corporate expense cards and solutions designed for the public sector, as well as general purpose reloadable prepaid cards and prepaid gift cards. Paysign is a registered trademark of the company in the United States and other countries. Corporate Incentives The company’s Paysign corporate incentive cards offer businesses a practical and contemporary way to reward and motivate existing and potential customers, employees, donors, patients, clinical trial participants, sales professionals, agents and distributors. The company develops incentive card programs, either traditional plastic or virtual, that the company’s customers use for a wide variety of applications, including but not limited to: consumer rebates for large purchases or frequent buyers; trade incentives for third party distributors; new product launches and commission based sales incentives; consumer promotions, such as automobile test drives; purchase incentives; loyalty rewards; compensation for the time and effort of donating; pharmaceutical payment assistance; referral programs; event giveaways; and purchase incentives. The Paysign solution can be integrated into existing payment management systems or act as a stand-alone solution. All Paysign cards are accepted anywhere Visa, Interlink, Plus, MasterCard, Maestro, Cirrus, Discover and Pulse are accepted depending on the brands used on the card. Per Diem/ Corporate Expense Payments Per Diem, Corporate Expense and Business Travel Cards are reloadable prepaid card that allows businesses, non–profits and government agencies the ability to control employee spending while reducing administration costs by eliminating the need for traditional expense reports. The company is focusing on marketing these card products to large corporations. Pharmaceutical Market The company’s Paysign solutions for the pharmaceutical industry are a specialized, adjudicated solution that pays all or a portion of a patient’s out-of-pocket costs associated with a prescription drug purchase. Funds are provided by the sponsoring pharmaceutical company for use at retail pharmacies, specialty pharmacies, hospitals, doctors’ offices and clinics nationwide. The company’s pharmaceutical solutions provide payment claims processing and other administrative services for clients according to client benefit plan designs. The company’s offerings also allow clients to directly manage more of their pharmacy benefits and include pharmacy claims adjudication, network and payment administration, client call center service and support, reporting, rebate management, as well as implementation, training and account management. Patient Affordability Products and Services Paysign provides targeted products and services designed to address financial barriers related to patients starting and remaining on brand name and biosimilar drug therapies. The company’s products are specifically designed to work within the established workflow of the specific healthcare provider. These products can be used to cover all or a portion of the patient’s financial responsibility. The company continues to build out additional products as industry concerns continue to emerge presenting new business opportunities. A critical component of all patient affordability products is the ability of a pharmaceutical manufacturer to access and visualize data related to the performance of their affordability program, patient and prescriber behavior, and overall brand growth on a commercially insured patient basis. To provide these insights, Paysign has data scientist and a team of analytic professionals dedicated to these products and clients. Pharmacy Based Voucher and Copay Affordability Programs: Voucher and Copay programs have become an industry standard offering for pharmaceutical brands entering a market or seeking to increase market share. These products are processed via the pharmacy transactional systems in accordance with established standards. These products are the most common form of affordability programs and exist for almost every retail and specialty-based branded pharmaceutical drug. Pharmacies process claims to one of Paysign’s chosen processors who grow and maintain their own individual contractual networks. Claims may be submitted in the primary or secondary payor position where the company’s processor will adjudicate the claim in accordance with business rules defined by each client. Medical Claims Based Affordability Programs: These programs are similar to pharmacy-based products but utilize internal networks developed and maintained by Paysign. The company is a direct processor of these claims and conduct adjudication on an internal proprietary platform specifically designed to address the needs of the company’s clients and their unique business rules. Payments for processed claims are made directly to a healthcare provider using the company’s virtual debit card products. Debit Based Affordability Programs: The company continues to utilize physical and virtual debit cards to address highly specific industry concerns related to patient affordability. These issues include utilization of debit-based products to combat copay accumulators and maximizers, one of the largest threats in the marketplace for pharmaceutical manufacturers. Source Plasma Donor Payments The company offers a comprehensive customized payment solution for source plasma collection centers under the Paysign brand. The solution consists of the Paysign Plasma Donor Compensation Prepaid Card, the Paysign Partner Portal for administrators, and the Paysign Kiosk. The company’s Plasma solution also provides cardholders with a point-of-sale cash back rewards program, a pharmacy prescription discount card and a digital bank account which are all used to assist the company’s Pharma clients in their efforts to maximize the donor experience. The solution offers customized reporting and provides a level of business analytics previously unavailable. The solution can be utilized either as a stand-alone web-based solution or integrated with existing donor management systems, giving plasma donation centers an increased level of flexibility. The company entered the market in late 2011 and has seen significant growth in this market segment. The company services approximately 40% of the plasma collection centers in the United States. DDA Debit Cards—Paysign Premier Recently, providers of GPR card products, in response to changes in the regulatory environment, have introduced new products similar to a GPR card but that act as true demand deposit accounts accessible with a debit card (‘DDA Debit Card’). These DDA Debit Cards offer many of the features and functionalities of a traditional debit card associated with a standard bank account, including overdraft protection. The company began marketing its DDA Debit Card, branded Paysign Premier Digital Bank Account, in the third quarter of 2019. The company markets this product to a targeted portion of its existing cardholder base through existing communication points and to customers and employees of new clients. Other Services Customer Service Center In order to provide a full range of services to the company’s customers, the company offers a fully staffed, in-house Customer Service Center, which is operational 24 hours a day, 7 days per week consisting of live bilingual customer care representatives. The Paysign platform provides IVR, SMS alerts and two-way SMS messaging, allowing cardholders to set alerts and check their balances and transaction history without the assistance of a live customer service operator. The company’s in-house customer service center provides the highest quality customer service experience for the company’s clients as training is performed on-site by Paysign staff. The Paysign Communications Suite To help maximize the cardholder experience, cardholders can access their card balances and transaction history, as well as other information as dictated by the program, such as an ATM locator, a loyalty point counter, and geo-specific messaging through a number of touchpoints, such as the Paysign kiosk, the Paysign Mobile App, two-way SMS, text alerts and the Paysign cardholder web portal. Sales and Marketing The company markets its Paysign payment solutions through direct marketing by the company’s sales team. The company’s primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents and others. To reach these markets, the company focuses its sales efforts on direct contact with its target market and attendance at various industry specific conferences. The company may, at times, utilize independent contractors who make direct sales and are paid on a commission basis only. The company markets its Paysign Premier product through existing communication channels to a targeted segment of the company’s existing cardholders, as well as to a broad group of individuals, ranging from non-banked to fully banked consumers with a focus on long term users of the company’s product. Markets and Major Customers As of December 31, 2022, the company managed approximately 550 card programs with approximately 5.3 million participating cardholders. Regulations The company’s products and services are generally subject to federal, state and local laws and regulations, including: anti-money laundering and anti-bribery laws; money transfer and payment instrument licensing regulations; escheatment laws; privacy and information safeguard laws; data and personal information protection; bank regulations; consumer protection laws; tax; environmental sustainability (including climate change); false claims laws and other fraud and abuse restrictions; and privacy and security standards under the Health Insurance Portability and Accountability Act (‘HIPAA’) or other laws. The company’s products and services are generally subject to federal anti-money laundering laws, including the Bank Secrecy Act, as amended by the USA PATRIOT Act, and similar state laws. On an ongoing basis, these laws require the company, among other things, to: report large cash transactions and suspicious activity; screen transactions against the U.S. government’s watch-lists, such as the watch-list maintained by the Office of Foreign Assets Control (OFAC); prevent the processing of transactions to or from certain countries, individuals, nationals and entities; identify the dollar amounts loaded or transferred at any one time or over specified periods of time, which requires the aggregation of information over multiple transactions; gather and, in certain circumstances, report customer information; comply with consumer disclosure requirements; comply with anti-corruption laws and regulations; and register or obtain licenses with state and federal agencies in the United States and seek registration of any retail distributors when necessary. In the ordinary course of the company’s business, the company or its third-party service providers collect certain types of data, which subjects the company to certain privacy and information security laws in the United States, including for example, the Gramm-Leach-Bliley Act of 1999, and other laws or rules designed to regulate consumer information and mitigate identity theft. The company is also subject to privacy laws of various states. All of the cards that the company services are issued by a state-chartered bank. Thus, the company is subject to the oversight of the regulators for, and certain laws applicable to, these card issuing banks. The Health Insurance Portability and Accountability Act of 1996 contains privacy regulations and the security regulations that apply to some of the company’s operations. History The company was founded in 1995. It was incorporated in 1995. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in 2019.