Prepaid Financial Services (PFS) a leader in prepaid debit cards will acquire Barclays Bank UK PLC’s., physical prepaid debit card portfolio known as the Barclaycard in a definitive agreement, January 31, 2019. The acquisition is scheduled to be completed as expediently as possible, while maintaining PFS’s high-quality standards. This announcement comes after PFS just released they are hiring 50 new staff immediately for their technology lab; one would assume they are related.
Noel Moran, CEO at PFS said: “We had been in discussion with Barclays regarding their physical prepaid cards and looking at opportunities to work together. In January, we agreed a deal whereby PFS acquired Barclays’ portfolio and would work with Barclays to migrate clients off the existing prepaid platform and over to PFS. We are working hard to achieve a seamless migration for clients of Barclays. The deal will enable PFS to offer an enhanced service to existing and future Payroll and Corporate clients. Adding this Corporate and Payroll portfolio to our existing Corporate book further strengthens our position in the market as one of the leading payment providers for Corporate customers.”
The prepaid card industry is volume based, with certain segments having more profitability than others. The corporate and payroll segments which PFS is purchasing from Barclays to enhance their current offerings tends to be very profitable as they have repeat loads and are not as sensitive to the fluctuations in the economy. This will assist PFS in continuing profitability, of which they have a 10-year history.
“PFS is one of Europe’s largest e-money issuers and has returned profits for 10 consecutive years. With programmes active in 25 countries and growing, the company has the ability to transact in 23 currencies. PFS’ products and state-of-the-art technology platforms are trusted by governments, local authorities, NGOs, mobile network operators, banks and corporate clients globally. PFS is an agile Fintech chosen by other Fintechs to revolutionize the digital economy securely and in real-time.”
PFS has been in the news a lot recently with its founder Noel Moran, receiving numerous awards in the European Fintech industry. Last, look for upcoming news on an initial public offering (IPO) or flotation for PFS towards the end of this year.
Overview by Sue Brown, Director, Prepaid Advisory Service at Mercator Advisory Group