MasterCard said the acquisition of Travelex’s CPM operations furthers its strategic business goals and strengthens the company’s suite of global prepaid business assets.
MasterCard also said that it will allow to play a greater role in the prepaid value chain supporting issuers and partners, especially outside of the US and in the attractive cross-border payments space.
In December last year, MasterCard agreed to acquire prepaid Card Program Management (CPM) operations of Travelex for $458m in cash.
MasterCard has acquired the Travelex operations that manage and deliver consumer and corporate prepaid travel cards to business partners globally, including financial institutions, retailers, travel agents and foreign exchange bureaus.
These operations also manage cross-border payroll, per-diem and expense-management prepaid cards for corporations.
As part of the transaction, MasterCard and Travelex also signed a long-term contract whereby MasterCard will provide program management services for the Travelex Cash Passport prepaid card sold through Travelex stores and online channels.
