By Dan Ilett, 15 August 2006 16:20
NEWS
Europeans will spend €75bn using prepaid cards by 2010, research predicts.
Some 2.3bn transactions will be made every year on the cards - an increase of 110 per cent each year - according to the study from PSE Consulting.
The spend is expected across 360 million prepaid cards. Internet payment cards, which are a security-focused alternative to credit cards, are expected to generate 13 per cent of the growth. Company rewards and incentives programmes are set to account for 12 per cent of spending.
"Gift voucher" cards will fuel almost 30 per cent of growth, while prepaid cards to replace travellers' cheques and foreign cash will account for 15 per cent of spending.
But Peter Jones, MD of PSE, said banks must act quickly to secure a share of the prepaid opportunity and to compete with other companies.
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1. Richard
Pre-paid Phone Cards?
What about the booming market in pre-paid phone cards which offer cheap international rates?
ps. Are pre-paid cards used to raise or "launder" money for shady organizations?