16 June 2006
Link, the operator of the UK's cash machine network, has invested in a company that offers a prepay cash card that serves as a useful credit card alternative.
The company has bought a 17% stake in PrePay Technologies, allowing it to move into the prepay card market.
Prepaid cards allow consumers to conveniently store cash without running the risk of becoming overdrawn as they can only spend the amount stored on their card. As such, they have a number of useful applications, including as a credit card alternative for customers travelling abroad who do not want to take a credit card with them.
Steve Smith, managing director of Link's commercial outsourcing division Avantra, said: "We chose to invest in PrePay Technologies because of its existing presence in the fast-growing prepaid cards market, expertise and track record of delivering programmes to big brands such as Debenhams, Western Union, Arcadia, Laura Ashley and Comet."
He added the deal created "a strong partnership that is ideally positioned to support customers wishing to issue prepaid cards in financial services and the public sector".
"Customer adoption of prepaid cards is growing as they embrace the ease of use and simplicity of the cards," said Philippe Dufour, head of PrePay Technologies.
"We are confident that the success we have achieved in the retail and youth markets will be replicated in other areas through our partnership with Link and Avantra."
Compare credit cards and start saving money. It takes just a couple of minutes to find the best credit cards for your needs on uSwitch.com