Despite the current economic downturn, the global prepaid card market is reportedly expected to reach $64 billion in 2023. Prepaid cards are set to continue this growth throughout the decade, reaching $84 billion in 2027 and growing at a compound annual growth rate (CAGR) of 8%.
Now, Amsterdam-based Recharge, a notable company in the prepaid payments industry, has announced the successful acquisition of Startselect, a European digital gift and gaming cards company based in Eindhoven. This move positions the company on course to generate €750 million in annual sales in 2024.
This marks the inaugural milestone in Recharge’s M&A strategy aimed at consolidating the digital prepaid payments market and strengthening its global leadership position. Further, the acquisition also follows Recharge’s recent entry into the US and Canada through the acquisition of Blackhawk.
With the addition of Startselect, Recharge aims to build its global network of digital marketplaces with prepaid payment products. Startselect, known for its extensive range of gaming products, particularly catering to gamers, brings with it a reputation for delivering high-quality digital marketplaces.
Further, the acquisition will strengthen Recharge’s prepaid product offerings which includes global shop Recharge.com and country-specific labels Beltegoed.nl, Recharge.fr, Guthaben.de, Herladen.com, and Mobiletopup.co.uk. In addition, the company is also planning on closing another 2-3 acquisitions in the next 12 months.
Günther Vogelpoel, CEO of Recharge, commented, “Consolidation has been a theme in fintech in the recent period and I have no doubt in the value of this combination for our company. I’m also excited to welcome the Startselect team to the Recharge family. Combining our strengths and capabilities leads to a powerful competitive position in the industry. Together, with our larger scale, we can offer an even better service to prepaid users worldwide.”
Max Gudden, Founder of Startselect, shared, “I feel proud of the whole team at Startselect that made this milestone possible. Being a part of Recharge starts a new chapter for us, where we can reach new heights. We are eager to continue our growth path together.”
Prepaid payments made fast and easy
Recharge was founded in 2010 by Robin Weesie and Dirk Ueberbach in the Netherlands to disrupt the digital call credit market. In 2012, the company launched as a cross-border call credit e-tailer.
With its mission to ‘Make Prepaid Easy,’ the company offers over 16,000 digital vouchers and prepaid solutions, including gift cards, gaming cards, prepaid money cards, and mobile phone top-ups. It claims to be one of the first companies to offer easy online purchases of digital prepaid cards through its webshops and apps. Since its debut, Recharge has processed over 100 million transactions for satisfied customers globally.