In the midst of economic challenges, the global prepaid card market is defying the odds with a projected surge, expected to soar to a staggering $64 billion by 2023. This remarkable growth story is set to continue throughout the decade, with the market poised to reach an impressive $84 billion in 2027, boasting a robust Compound Annual Growth Rate (CAGR) of 8%.
But amidst this flourishing landscape, Amsterdam-based Recharge has made waves with a pivotal announcement - the successful acquisition of Startselect, a European digital gift and gaming card company based in Eindhoven. This strategic move catapults Recharge into the fast lane, positioning the company on a trajectory to achieve €750 million in annual sales by 2024.
This acquisition is more than just a milestone; it's a cornerstone in Recharge's overarching M&A strategy. It's a strategy that aims to consolidate the digital prepaid payments market and fortify its position as a global leader. This announcement comes on the heels of Recharge's recent entry into the United States and Canada through its acquisition of Blackhawk.
The addition of Startselect to Recharge's portfolio signifies the company's ambition to expand its global network of digital marketplaces offering prepaid payment products. Startselect, renowned for its extensive array of gaming products with a special focus on catering to gamers, brings with it a reputation for delivering top-notch digital marketplaces.
Furthermore, this acquisition augments Recharge's already robust prepaid product lineup, which includes the global shop Recharge.com and region-specific labels like Beltegoed.nl, Recharge.fr, Guthaben.de, Herladen.com, and Mobiletopup.co.uk. And this is just the beginning. Recharge has its sights set on closing another 2-3 acquisitions in the next 12 months, signaling its determination to stay at the forefront of the prepaid payments industry.
Günther Vogelpoel, CEO of Recharge, expressed his enthusiasm, stating, "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 his pride in the achievement, saying, "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."
Recharge, founded in 2010 by Robin Weesie and Dirk Ueberbach in the Netherlands, entered the scene with a mission to 'Make Prepaid Easy.' Over the years, it has transformed the digital call credit market and expanded its offerings to include over 16,000 digital vouchers and prepaid solutions. These offerings encompass gift cards, gaming cards, prepaid money cards, and mobile phone top-ups.
What sets Recharge apart is its pioneering approach, being one of the first companies to offer convenient online purchases of digital prepaid cards through its webshops and apps. This dedication to ease and accessibility has resulted in over 100 million transactions processed for satisfied customers worldwide, cementing Recharge's status as a driving force in the prepaid payments industry.
