MasterCard purchase is global travel card validation

MasterCard Worldwide's purchase of the prepaid card program management operations of Travelex indicates the increasing relevance of prepaid cards to drive revenues on a global scale.

MasterCard said the $458 million cash purchase, with an additional $55 million potentially owed if certain performance targets are met, sets up the card brand to become a global leader in the prepaid card industry, especially within the high-growth, cross-border segment, which Travelex services with its Cash Passport prepaid travel card and other products.

MasterCard already has a long-term partnership agreement with Travelex, but now MasterCard becomes the exclusive brand for Travelex's prepaid offerings, the Purchase, N.Y.-headquartered company said.

Ajay Banga, MasterCard President and Chief Executive Officer, said prepaid has a projected global growth of approximately 22 percent through 2017, with a seven-fold increase in the global transaction volume for the travel card market – about 76 billion in global volume by 2017.

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