RocketCash Zooms Into NetZero's Pocket

Share this article:
RocketCash Corp., a payment service that allows consumers to buy online without a credit card, agreed last month to be purchased by NetZero Inc., the nation's leading provider of free Internet access, in a deal valued at $36 million.


In addition to payment processing technology, the acquisition strengthens NetZero's e-commerce capability by giving it access to 200,000 RocketCash accounts, 80 percent of which are held by teen-agers. NetZero's service relies on advertising, sponsorship and market research for revenue.


The deal gives RocketCash exposure to the estimated 4 million users who have registered with NetZero, Westlake Village, CA, for free Internet access service.


"We've always targeted consumers who wanted to shop online without a credit card, with teen-agers being the largest group of those people," said Carol Kruse, vice president of marketing at RocketCash, Mountain View, CA. "However, we do know that there are a lot of adults who're concerned about shopping online because they don't want to give their credit card [details] over the Internet."


While acquisition details are still being worked out, Kruse expect the deal to also result in private-label or co-branded versions of RocketCash.


RocketCash has relationships with more than 110 online retailers, including JCrew.com, Alloy Online, Delia's, CDNow.com, Staples.com, fogdog.com, Pacific Sunwear, Amazon.com and Barnes & Noble.com.


The service functions like a debit card. RocketCash users open an account with a check, money order, credit card or gift certificate. The account allows users to shop online with a fixed balance that reduces with each purchase. The average deposit in RocketCash accounts is $36. The average purchase is $29.


Also, RocketCash can meld online and offline currencies such as consumer products incentives and loyalty points programs in a central location at www.rocketcash.com.

This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions