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== History ==
== History ==
JPay was started in 2002 by the company’s [[CEO]] and founder, Ryan Shapiro. Initially the company struggled to enter the prison system though it found success when it began offering profit-sharing, described by critics as legal [[Kickback (bribery)|kickbacks]]<ref name=Time>https://time.com/3446372/criminal-justice-prisoners-profit/</ref> to the prisons. In 2005, the company moved its headquarters from [[New York City|New York]] to [[Miami, Florida|Miami]]. In 2009, JPay’s services expanded to offer an inmate [[MP3 player]] (the “JP3”) and a library of music tracks for [[digital distribution|digital download]] at an above market price.<ref name="autogenerated1">David Peisner, [http://www.spin.com/articles/prison-jail-music-mp3s-access-jpay/?page=1 Captive Audience: The Music Business in America's Prisons], Spin, May 9, 2013</ref> Prisons that sell Jpay music products often confiscate the music devices already owned by inmates. In 2011, JPay moved its headquarters from Miami to Miramar, Florida, to accommodate a larger call center.<ref>Narayan Bhat, [http://outbound-call-center.tmcnet.com/topics/outbound-call-center/articles/165648-jpay-relocates-its-call-center-miramar-adds-75.htm JPay Relocates its Call Center to Miramar & adds 75 New Jobs], TMCnet, April 18, 2011</ref>
JPay was started in 2002 by the company’s [[CEO]] and founder, Ryan Shapiro. Initially the company struggled to enter the prison system though it found success when it began offering profit-sharing, described by critics as legal [[Kickback (bribery)|kickbacks]]<ref name=Time>https://time.com/3446372/criminal-justice-prisoners-profit/</ref> to the prisons. In 2005, the company moved its headquarters from [[New York City|New York]] to [[Miami, Florida|Miami]]. In 2009, JPay’s services expanded to offer an inmate [[MP3 player]] (the “JP3”) and a library of music tracks for [[digital distribution|digital download]] at an above market price.<ref name="autogenerated1">David Peisner, [http://www.spin.com/articles/prison-jail-music-mp3s-access-jpay/?page=1 Captive Audience: The Music Business in America's Prisons], Spin, May 9, 2013</ref> Prisons that sell JPay music products often confiscate the music devices already owned by inmates. In 2011, JPay moved its headquarters from Miami to Miramar, Florida, to accommodate a larger call center.<ref>Narayan Bhat, [http://outbound-call-center.tmcnet.com/topics/outbound-call-center/articles/165648-jpay-relocates-its-call-center-miramar-adds-75.htm JPay Relocates its Call Center to Miramar & adds 75 New Jobs], TMCnet, April 18, 2011</ref>


In 2012, JPay launched a [[tablet computer|tablet]] (the "JP4") designed for the corrections industry which enables inmates to read and draft emails, play games, and listen to music.<ref name="businessweek.com">Nick Leiber, [http://www.businessweek.com/articles/2012-08-14/the-apple-of-the-u-dot-s-dot-prison-system JPay, the Apple of the U.S. Prison System], Bloomberg Business Week, September 12, 2012</ref> It also allows inmates to view and attach photos and videograms.<ref name="correctionsforum.net">[http://www.correctionsforum.net/article/from-flinstones-to-jetsons-38435 Donna Rogers, From Flinstones to Jetsons, Corrections Forum, April 2014]</ref> The decision to permit use of the JP4, and the full extent of its functions, is made by the state [[corrections]] departments. JPay’s tablet has been distributed in seven [[Department of Corrections|DOC]] agencies, including [[North Dakota Department of Corrections and Rehabilitation|North Dakota]], [[Georgia Department of Corrections|Georgia]], [[Florida Department of Corrections|Florida]], [[Louisiana Department of Corrections|Louisiana]], [[Virginia Department of Corrections|Virginia]], [[Michigan Department of Corrections|Michigan]] and [[Washington Department of Corrections|Washington]].<ref name="usatoday1">Kimberly Railey, [http://www.usatoday.com/story/news/nation/2013/08/17/tabletsforinmates/2651727/ Some prisons let inmates connect with tablets], USA TODAY, August 18, 2013</ref><ref name="breakthruradio1">Zach Schepis, [http://www.breakthruradio.com/#/post/?blog=72&post=27677 Freedom Behind Bars? - Orange Is The New Black Week], BreakThru Radio, September 26, 2013</ref>
In 2012, JPay launched a [[tablet computer|tablet]] (the "JP4") designed for the corrections industry which enables inmates to read and draft emails, play games, and listen to music.<ref name="businessweek.com">Nick Leiber, [http://www.businessweek.com/articles/2012-08-14/the-apple-of-the-u-dot-s-dot-prison-system JPay, the Apple of the U.S. Prison System], Bloomberg Business Week, September 12, 2012</ref> It also allows inmates to view and attach photos and videograms.<ref name="correctionsforum.net">[http://www.correctionsforum.net/article/from-flinstones-to-jetsons-38435 Donna Rogers, From Flinstones to Jetsons, Corrections Forum, April 2014]</ref> The decision to permit use of the JP4, and the full extent of its functions, is made by the state [[corrections]] departments. JPay’s tablet has been distributed in seven [[Department of Corrections|DOC]] agencies, including [[North Dakota Department of Corrections and Rehabilitation|North Dakota]], [[Georgia Department of Corrections|Georgia]], [[Florida Department of Corrections|Florida]], [[Louisiana Department of Corrections|Louisiana]], [[Virginia Department of Corrections|Virginia]], [[Michigan Department of Corrections|Michigan]] and [[Washington Department of Corrections|Washington]].<ref name="usatoday1">Kimberly Railey, [http://www.usatoday.com/story/news/nation/2013/08/17/tabletsforinmates/2651727/ Some prisons let inmates connect with tablets], USA TODAY, August 18, 2013</ref><ref name="breakthruradio1">Zach Schepis, [http://www.breakthruradio.com/#/post/?blog=72&post=27677 Freedom Behind Bars? - Orange Is The New Black Week], BreakThru Radio, September 26, 2013</ref>

Revision as of 15:59, 10 November 2014

JPay
Company typePrivate
IndustryFinancial Services
Corrections
Technology
Founded2002
HeadquartersMiramar, Florida
Key people
Ryan Shapiro, CEO
ProductsInmate Money Transfer & Communications,
Community Corrections, Payments
Number of employees
250
WebsiteJPay.com

JPay is a privately held money transfer company based in the United States with its headquarters in Miramar, Florida. The company contracts with state Departments of Correction (DOC), county jails, and private federal prisons to provide consumer-facing inmate services, including money transfer, email, and video visitation, to approximately 1.5 million inmates throughout 35 states.[1]

History

JPay was started in 2002 by the company’s CEO and founder, Ryan Shapiro. Initially the company struggled to enter the prison system though it found success when it began offering profit-sharing, described by critics as legal kickbacks[2] to the prisons. In 2005, the company moved its headquarters from New York to Miami. In 2009, JPay’s services expanded to offer an inmate MP3 player (the “JP3”) and a library of music tracks for digital download at an above market price.[3] Prisons that sell JPay music products often confiscate the music devices already owned by inmates. In 2011, JPay moved its headquarters from Miami to Miramar, Florida, to accommodate a larger call center.[4]

In 2012, JPay launched a tablet (the "JP4") designed for the corrections industry which enables inmates to read and draft emails, play games, and listen to music.[5] It also allows inmates to view and attach photos and videograms.[6] The decision to permit use of the JP4, and the full extent of its functions, is made by the state corrections departments. JPay’s tablet has been distributed in seven DOC agencies, including North Dakota, Georgia, Florida, Louisiana, Virginia, Michigan and Washington.[7][8]

Business Model and Growth Strategy

In a 2012 Bloomberg Business Week article entitled "JPay, the Apple of the Prison System," Ryan Shapiro, the company’s founder and CEO, stated, "We're looking for products that an inmate would want to buy and a corrections facility would accept." He went on to state, "We take outside applications, redevelop them for prisons specifically, and then deploy them…the prison doesn't pay for any of (our services); it's the end user who pays." And, as the JP4 was being launched, Shapiro was quoted saying, “Think about education, think about games; it's endless where we could go. We think it's as big, if not bigger, than the money-transfer business."[5]

JPay spends heavily on parties, conventions, and lobbyists, to grow its presence.[2]

Products and Services

Money Transfer

For a fee, an inmate’s friend or family member can use JPay’s money transfer service to deposit money to the inmate’s commissary or trust account. JPay offers electronic payment and deposit options which include credit and debit card payments via online, phone, and mobile app channels. The company has a relationship with MoneyGram to accept cash at MoneyGram’s U.S. agent locations, like Walmart and CVS/pharmacy.[9][10] Additionally, the company processes money orders on behalf of its contracted agencies.[11][12]

Communications and Inmate Devices

JPay provides services that an inmate and an inmate's family and friends can use to communicate, such as video visitation, email, videogram,[6] instant messaging,[6] and a tablet computer ("JP4").[13]

Parole and Probation Payments

JPay provides payment services for offenders to make community corrections and court-ordered payments.[14][15] As part of its parole and probationary services, JPay also offers a release card[15] (JPay Progress Card), which is a prepaid, high-fee, reloadable MasterCard card.[16] While all agencies contract to use JPay for money transfer services, they do not all utilize JPay’s full ranges of services.[17]

Money Transfer Violation

JPay was fined $80,000 by the Pennsylvania Department of Banking in 2011 for violating the state’s Money Transmitter Act.[18] In total, JPay has been fined $408,500 across seven states.[2]

References

  1. ^ Nick Leiber, JPay working to be Apple of prison system, SFGate, August 20, 2012
  2. ^ a b c https://time.com/3446372/criminal-justice-prisoners-profit/
  3. ^ David Peisner, Captive Audience: The Music Business in America's Prisons, Spin, May 9, 2013
  4. ^ Narayan Bhat, JPay Relocates its Call Center to Miramar & adds 75 New Jobs, TMCnet, April 18, 2011
  5. ^ a b Nick Leiber, JPay, the Apple of the U.S. Prison System, Bloomberg Business Week, September 12, 2012
  6. ^ a b c Donna Rogers, From Flinstones to Jetsons, Corrections Forum, April 2014
  7. ^ Kimberly Railey, Some prisons let inmates connect with tablets, USA TODAY, August 18, 2013
  8. ^ Zach Schepis, Freedom Behind Bars? - Orange Is The New Black Week, BreakThru Radio, September 26, 2013
  9. ^ "Sending Money". Mdoc.state.ms.us. Retrieved 2014-02-23.
  10. ^ "Transfer money, online money transfer and bill pay | MoneyGram Global Money Transfer". Moneygram.com. Retrieved 2014-02-23.
  11. ^ "CORRECTIONS - Money - Sending Money to a Prisoner via JPay". Michigan.gov. 2013-09-04. Retrieved 2014-02-23.
  12. ^ "JPay Inmate Services - Send Money, Send Email, Send Packages". Jpay.com. Retrieved 2014-02-23.
  13. ^ Leslie Kraft Burke, JPay offers innovative services to corrections; grows revenue, staff, South Florida Business Journal, September 28, 2012
  14. ^ "JPay Inmate Services - Send Money, Send Email, Send Packages". Jpay.com. Retrieved 2014-02-23.
  15. ^ a b "JPay". Corrections Marketplace. Retrieved 2014-02-23.
  16. ^ "JPay Inmate Services - Send Money, Send Email, Send Packages". Jpay.com. Retrieved 2014-02-23.
  17. ^ Leslie Kraft Burke, JPay offers innovative services to corrections; grows revenue, staff, South Florida Business Journal, September 28, 2012
  18. ^ Ford Turner, Florida Firm Fined $80,000, Reading Eagle Business Weekly, February 7, 2012
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