24 July 2016
Find out more

MasterCard pays £290m for Travelex pre-paid card unit

09 December 2010  |  10690 views  |  0 handshake

MasterCard has acquired the pre-paid Card Program Management operations of Travelex for £290 million in cash.

The unit manages and delivers consumer and corporate pre-paid travel cards to financial institutions, retailers, travel agents and foreign exchange bureaus around the world. It also manages cross-border payroll, per-diem and expense-management pre-paid cards.

The two firms - which already work together - have also signed a long-term contract whereby MasterCard will provide program management services for the Travelex Cash Passport pre-paid card.

MasterCard - which has no plans to issue cards directly - says the acquisition strengthens its position in pre-paid, a fast-growing sector. The company cites a recent Boston Consulting Group study indicating that pre-paid is expected to reach more than $840 billion in global volume by 2017, a CAGR of 22%.

Ajay Banga, CEO, MasterCard, says: "This acquisition enables MasterCard to play a greater role in the prepaid value chain, allowing us to shape the future of prepaid, especially in high-growth markets and in the attractive cross-border payments space where we can displace cash and traveler's cheques."

Peter Jackson, CEO, Travelex, adds: "The sale of CPM will allow us to accelerate our investment plans, particularly in higher growth regions such as Asia and South America and in the growing e-commerce channel."

The deal also includes an earn-out of up to an additional £35 million if certain performance targets are met. The transaction, expected to close in the first half of 2011,is expected to be $0.04 dilutive to MasterCard's 2011 earnings, neutral in 2012 and accretive in 2013.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

WikiLeaks: US lobbied Russia for MasterCard and Visa

WikiLeaks: US lobbied Russia for MasterCard and Visa

08 December 2010  |  12350 views  |  1 comments
WikiLeaks: Hackers humble MasterCard; IT firm threatens to sue Visa Europe

WikiLeaks: Hackers humble MasterCard; IT firm threatens to sue Visa Europe

08 December 2010  |  16896 views  |  2 comments | 1 tweets
Travelex US issues Chip and PIN foreign currency cash card

Travelex US issues Chip and PIN foreign currency cash card

02 December 2010  |  10114 views  |  2 comments
MasterCard makes e-commerce push with £333m DataCash acquisition

MasterCard makes e-commerce push with £333m DataCash acquisition

19 August 2010  |  12701 views  |  0 comments
European pre-paid market poised for growth - First Data

European pre-paid market poised for growth - First Data

27 November 2009  |  10645 views  |  2 comments
Travelex releases pre-paid foreign currency card in North America

Travelex releases pre-paid foreign currency card in North America

29 February 2008  |  7329 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit www.abe-eba.euVisit VocaLink.com

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8294 views 14 comments | 32 tweets | 37 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
7972 views 3 | 19 tweets | 7 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
7936 views 0 | 14 tweets | 8 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
7861 views comments | 6 tweets | 3 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7646 views comments | 22 tweets | 28 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job