With inflation still very high compared to previous years, and the siren call of subscription services like Netflix and Spotify continuing to draw attention, consumers have become aware of alternative payment methods to manage their household bills. As a result, online prepaid payment platforms have benefited. It is the bet made today by Recharge, a key European player in online prepaid payments, which has obtained a loan facility of €45 million with ABN AMRO to see the market play with a round of M&A, as well as moving into Fintech- style services that can finally compete with some of the platforms larger payments. Through a range of digital vouchers from brands including Apple, Google, Spotify, Xbox, and PlayStation, as well as cross-border delivery, Recharge is attacking the market from several consumer angles. It says it already has strong cash reserves and claims 30% revenue growth in the years to 2024, while aiming to reach more than €100 million in revenue in 2025. With the new financing, there will be enough war chest for acquisitions. In an interview with TechCrunch CEO Recharge, Günther Vogelpoel, said: “We see an opportunity to grow faster through M&A and there are several opportunities in other markets and segments to join, especially since this industry is still young.” The prepaid card market in Europe is growing at a CAGR of 7.6% during 2019-2023. Between 2024 and 2028 it is expected to record a CAGR of 9.1%, rising from more than $251 billion in 2023 to $395 billion in 2028. More interestingly, Recharge’s application for an e-money license with the Dutch authorities shows that it has plans to make more. a powerful ‘Fintech’ style platform. Vogelpoel said that Recharge is “very keen” on expanding into the financial services space: “We are in the process of applying for an E-money license in the Netherlands, which will give us a license for Europe. Thus, we can start our own financial services. He added that he will be in the market for a wallet or card type “that will suit the current customer base.” But what about the technological aspect of this next phase?: “We are a profitable company,” said Vogelpoel 30% growth in 2024 which also increases the profit margin. So we have money in the bank to invest in our platform and technology. He said that to hold larger funds for customers also makes sense: “If you have a wallet as the main product, you can connect other services to the wallet as well as payments or cards that people can use to issue virtual cards … Neo bank .have an excellent portfolio of services, but we, in particular, meet the needs of customers who like budget, have control, also like privacy and security. This is the aspect of privacy and security that Recharge can offer, because pre-payment often gives privacy more with some services. Bas Janssen, senior client Digital and Consumer, ABN AMRO, said: “We see great promise in Recharge’s growth trajectory as we expand our reach in the global prepaid payments space.” In 2021 Recharge previously raised a €10 million ($11.8 million) debt financing round that led by London-based Kreos Capital, and €22 million from Prime Ventures in 2019.
