German payments company Wirecard AG announced this week that it has completed its purchase of Citi Prepaid Card Services, which gives it a beachhead in the U.S. prepaid incentives market.
Wirecard has today successfully completed the acquisition of the business of Citi Prepaid Card Services previously announced by Wirecard on 29 June 2016. Wirecard, a leading global group of companies in the area of payment processing and card issuing, can now boast more than 100 new employees in Conshohocken, Pennsylvania and an additional 20 employees in various international locations. With this acquisition, Wirecard AG has expanded its global presence in its core business of payment processing into the North American market.
Wirecard plans to add functions like instant-load digital cards to the Citi product offerings. It is not clear whether Citi will remain a prepaid issuer, but it is representative of a maturing prepaid market, where companies are evaluating where prepaid fits into their overall strategy and buying or selling portfolios based on that evaluation.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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