Travelex has sold its prepaid card programme
management (CPM) to MasterCard for £290m($458m) to “accelerate
investment” in Asian and Latin American regions.
Under the terms of the transaction, which is
expected to close in the second half of 2011, MasterCard has agreed
to provide programme management services for the Travelex Cash
Passport prepaid card, which is sold throughout Travelex’s stores
and online channels.
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“The acquisition of Travelex’s CPM operations
underscores MasterCard’s commitment to the global prepaid business,
which remains a key strategic focus for us,” said MasterCard CEO
and president Ajay Banga.
“This acquisition enables MasterCard to play a
greater role in the prepaid value chain, allowing us to shape the
future of prepaid, especially in the high-growth markets and in the
attractive cross-border payments space where we can displace cash
and traveller’s cheques.”
Along with the agreed sum MasterCard will pay
for Travelex’s CPM, a further £35m has been promised by the card
association if certain performance targets are met.
“The sale of CPM will allow us to accelerate
our investment plans, particularly in higher growth regions such as
Asia and South America and in the growing e-commerce channel,” said
Travelex CEO Peter Jackson.
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