Friday, December 10, 2010
MasterCard purchase is global travel card validation
MasterCard Worldwide's purchase of the prepaid card program management operations of Travelex indicates the increasing relevance of prepaid cards to drive revenues on a global scale.
MasterCard said the $458 million cash purchase, with an additional $55 million potentially owed if certain performance targets are met, sets up the card brand to become a global leader in the prepaid card industry, especially within the high-growth, cross-border segment, which Travelex services with its Cash Passport prepaid travel card and other products.
MasterCard already has a long-term partnership agreement with Travelex, but now MasterCard becomes the exclusive brand for Travelex's prepaid offerings, the Purchase, N.Y.-headquartered company said.
Ajay Banga, MasterCard President and Chief Executive Officer, said prepaid has a projected global growth of approximately 22 percent through 2017, with a seven-fold increase in the global transaction volume for the travel card market – about 76 billion in global volume by 2017.
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