Wirecard has crossed the pond and found the U.S. to still be the land of opportunity.
After quietly acquiring Citi Prepaid Card Services for an undisclosed amount (in cash) in June, Wirecard is now gearing up for transaction volumes of $6 billion as early as 2017.
The Aschheim, Germany-based payments processor expects that the prepaid business will add some $100 million in revenue by the end of next year, the company said in its 3Q earnings report, released Wednesday. The acquisition is part of Wirecard’s global expansion strategy, and is expected to close by the end of this year. Wirecard estimates U.S. transaction volume between 2018 and 2020 to grow 25% year-over-year. From the report:
In order to globally support customers both in the areas of acquiring and also issuing, as well as to accompany them internationally with their omnichannel strategies, it is necessary to have a worldwide presence. Wirecard started implementing this strategy at an early stage with its expansion into the Asia-Pacific region, Africa and South America. Following the expected conclusion of the acquisition of Citi Prepaid Card Services in the USA, global coverage has been essentially achieved.
Prior to the acquisition, Citi Prepaid Card Services initiated more than 2,500 card programs with various companies, primarily in the U.S. The portfolio is mainly comprised of incentive and compensation cards, Wirecard said, meaning gift and payroll cards, instead of general purpose reloadable cards.
Back in February, the banking software provider partnered with Monzo, a U.K.-based neobank, becoming the bank’s primary card issuer.1 - Reader Likes This Post