Company Plots Virtual Currency for Teens - Brief Article

A new San Francisco-based Internet company, Cybermoola, is looking to help credit-crunched teens to buy things on the Web without a credit card.

Cybermoola cards, which function similarly to the prepaid phone cards that have become wallet staples, will be available at grocery stores and other retail outlets, including brick and mortar versions of online Cybermoola merchants. As with prepaid phone cards, Cybermoola cards can be co-branded.

People interested in using the service can log on to the Web site and set up an account. They can then enter the code from a purchased card into their profile to credit their account with the Cybermoola cash. Payment is settled off-line between the merchant and Cybermoola by electronic funds transfer.

While Cybermoola can be used by anyone, company executives feel the product will primarily appeal to the 14-17 year-old market both because of its lack of access to traditional credit cards and its interest in spending discretionary income. "It's all about teen independence," said president and CEO Eric Freeman, "and we go directly to teens."

Four merchants have already signed up for the Cybermoola program: music sites EZCD and Saul GoodMan M.D., and fashion sites Outletmall and Deelish.

The "soft launch" of the site, which has taken place over the past two weeks, will eventually be augmented with more content, functionality and merchants. In early October, the company will launch a viral marketing program in which Cybermoola representatives will post offers for Cybermoola on various teen message boards.

COPYRIGHT 1999 BPI Communications, Inc.
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