Today's announced alliance with a Virginia bank is another indication that the route Mr. Payroll is going to go will be joint ventures (such as Wells Fargo) and alliances in which some of the costs (and profits) are shared. This is probably the most cautious and prudent way to go. I think it is a good indication that new banks and companies are signing on to this project. I still can't believe that there isn't more (or any) competition in this type of machine - isn't Diebold or someone going to get into the act?
I agree that alliances are a more likely strategy than a spinoff.
I caution everyone not to get too excited about the Crestar announcement. Crestar is being acquired by SunTrust. SunTrust may be the most conservative bank in the world; and, they almost exclusively target the affluent. I can't imagine them supporting a big investment in a check cashing machine for the "unbanked."
If you review the news releases from a few months back, you will notice that things began to happen with Mr. Payroll just after the announcement of Dan Fehan's move from President of Cash America to Co-CEO of Mr. Payroll. Coincidence? I think not.
When Fehan went to CA they were a 150 shop national chain. They currently have approx. 475 shops worldwide.