Online payments company Paysafe has partnered with Visa to become a Principal Member of the card scheme.
Under the new partnership, Paysafe is now authorized to issue Visa prepaid cards to businesses and consumers across Europe.
Prepaid cards are now being widely used by both consumers and businesses. They provide an inexpensive option to access banking services, particularly for underbanked users.
The cards are also now being employed by industry sectors such as corporate institutions, retailers, government, and financial institutions.
They can also be used in ecommerce and point-of-sale transactions, and also for cash withdrawals. Organisations can use prepaid cards for travel expense management, promotional offers, retail cashback and employee rewards and incentives.
By only allowing cardholders to spend what they deposit, prepaid cards can offer the convenience of a credit card without the risk of debt. They can also reduce the risk of fraud by allowing cardholders to protect their bank account details. They can also help in saving money abroad by locking in favourable exchange rates when funds are deposited in advance.
Paysafe Group, Skrill, NETELLER and Income Access CEO Lorenzo Pellegrino said: “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.
“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.”
According to an estimate by Allied Market Research, the market for prepaid cards is expected to reach $3,653bn by 2022. An annual growth rate of 22.7% between 2016 and 2022 has been estimated.
Research from Paysafe also suggests that 10% of consumers globally have used a prepaid card to make payment in the past month.
Visa, Fintech, UK & Ireland head Hugh Kingdon 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.”