Paysafe, a leading global payments provider, has announced a strategic partnership with Visa, confirming its status as a Principal Member of the card scheme. Through the new partnership Paysafe is authorised to issue Visa prepaid cards to businesses and consumers in Europe.
Paysafe’s expanding card issuing service is designed to offer consumers choice in how they pay in a market where the appetite for prepaid cards is growing globally. Estimates suggest an annual growth rate of 22.7% from 2016 to 2022, with an estimated total market value of $3,653 billion by 2022*. Researchcommissioned by Paysafe Group shows that 10% of consumers globally have used a prepaid card to make a payment in the past month.
Prepaid cards are widely used by both consumers and businesses. They offer an inexpensive but accessible banking substitute to underbanked users, and are also employed by industry sectors such as corporate institutions, retailers, government, and financial institutions. Prepaid cards can be used for eCommerce and point-of-sale transactions, as well as for cash withdrawals. Organisations may use prepaid cards for travel expense management, promotional offers, retail cashback and employee rewards and incentives.
“The ease of use and access to prepaid cards is contributing to the drive for cash alternatives, and the awareness of these solutions is growing rapidly,” said Lorenzo Pellegrino, CEO – Skrill, NETELLER and Income Access at Paysafe Group, responsible for Paysafe’s Issuing division. “The market is growing at a significant rate as the benefits of prepaid cards are realised among both consumers and businesses. Our card issuing partnership with Visa is a real milestone for us, to support us in offering a popular and reliable service to cardholders.”
By only allowing cardholders to spend what they load, prepaid cards provide the convenience of a credit card without the risk of debt. They can reduce fraud exposure by allowing cardholders to protect their bank account details. They can also help save money abroad by locking in favourable exchange rates when loaded with funds in advance.
Hugh Kingdon, Head of Fintech, UK & Ireland, Visa, said: “In recent years there has been a great deal of growth innovation in the European prepaid market, a trend that we at Visa have been excited to play our part in. We are always keen to use our expertise and experience to work collaboratively with partners such as Paysafe to develop innovative new offerings for businesses and consumers.”