Posted on 11/18/2014 at 09:12
Wirecard announces Partnership with Visa in Prepaid
Wirecard AG and Visa Inc. have announced their cooperation in prepaid card issuing
Wirecard AG and Visa Inc. have announced their cooperation in prepaid card issuing, affirming their joint commitment to the growing prepaid markets in Asia-Pacific, Latin America, and other regions. As part of the partnership, Wirecard and Visa Inc. today announce an agreement by which Wirecard will acquire certain assets of Visa Processing Service (VPS), headquartered in Singapore, and acquire all shares in Visa Processing Services (India) Private Limited for US $16 million; further terms were not disclosed. The agreement is subject to certain closing conditions.
Visa Processing Service is active in seven countries with a customer-base of 14 financial institutions and more than three million cardholders amongst more than 70 card programs. VPS provides financial institutions with an integrated solution for gift cards, general purpose reloadable (GPR) cards, single or multi-currency travel cards as well as money remittance.
Wirecard will support the global demand for prepaid cards with a wide-range of product offerings, including innovative mobile and contactless payment solutions, solutions for the unbanked and cards for the distribution of government benefits. As part of the relationship, Wirecard intends to provide outsourcing services to Visa for the provision of specific prepaid processing services in support of Visa’s clients.
In addition, Wirecard has joined the Visa Issuer Processing Program, designed to match financial institutions with leading prepaid issuer processors to help support and grow prepaid programs globally.
Dr. Markus Braun, CEO at Wirecard says: “The issuer processing agreement, and acquisition of certain assets of Visa Processing Service significantly strengthen our position in the global prepaid market. We are very excited about working to drive the distribution of Visa prepaid cards and grow prepaid markets worldwide.”
The opportunity for prepaid cards continues to expand around the world. The growing popularity of prepaid cards is driven by several trends including consumer interest in alternatives or complementary products to traditional checking accounts, government and business desire to replace cash and checks with a more transparent, cost-effective alternative, and the rise of innovative mobile payment products.
Backed by strong economic growth, an expanding middle class, and government support for initiatives that will reduce physical currency transactions, Asia-Pacific, home to Visa Processing Service, has become one of the world’s largest markets for prepaid payment cards. With Asia become one of the world’s most advanced market for NFC and mobile proximity payments, Wirecard sees particular growth potential in innovative mobile payment solutions built on Visa prepaid cards.Download Press Release