Don’t bother opening up a PrePay account now. The discount provider is shutting its doors to new credits by the new year and will start refunding the money customers loaded into their accounts. TechCrunch originally incorrectly reported that the money you put in will be “vaporized” on Jan 1, 2013, causing the author to be pilloried in the comments section.
Shoddy journalism aside, this is yet another hint that the market for mobile payment apps and daily deals may have already reached supersaturation. Expect more apps like these (some of which you likely never heard of) to close down in the near future. If companies cannot connect enough clients to users they will disappear, like Gaggle of Chicks for example, a daily deals site formerly based in DUMBO and geared specifically to new moms.
In addition to knowing the market, companies also need to sign up loads of companies willing to provide good deals that people will be excited about. We will keep you informed of other companies like PrePay that just can’t hack it.