With inflation still high compared to previous years, and the siren calls of subscription services such as Netflix and Spotify continuing to appeal, consumers are understandably turning to alternative forms of payment to manage their household bills. As a result, online prepaid payment platforms benefit.

That is the bet that is now placed by Rechargea key European player in online prepaid payments, which secured a €45 million debt facility with ABN AMRO to look at rolling up the market with a round of M&A, as well as transferring to Fintech-style services that will eventually compete with some of the larger payment platforms.

Through a variety of digital vouchers from brands including Apple, Google, Spotify, Xbox, and PlayStation, as well as cross-border remittances, Recharge attacks the market from multiple consumer angles.

It says it has strong cash reserves and claims a 30% year-on-year revenue growth in 2024, while aiming to reach more than €100 million in revenue in 2025.

With the new funding, there is a large war chest for claims.

In an interview with the CEO of TechCrunch Recharge, Günther Vogelpoel, said: “We see an opportunity to grow faster through M&A and there are many opportunities in other markets and segments that we can integrate, especially this industry is still very young.”

The prepaid card market in Europe increased at a CAGR of 7.6% during the period 2019-2023. Between 2024 and 2028 it is IMMINENT to record a CAGR of 9.1%, rising from over $251 billion in 2023 to $395 billion in 2028.

More interestingly, Recharge’s application for an e-money license with the Dutch authorities suggests that it has plans to create a more robust ‘Fintech’ style platform.

Vogelpoel said Recharge is “very keen” to expand into the financial services space: “We are in the application process of applying for an E-money license in the Netherlands, which will give us license for Europe. With that, we can launch our own financial services.” He added that they are in the market for a wallet-like or card-type company “that fits well with our current customer base.”

But what about the technology side of this next phase?: “We’re a profitable company,” Vogelpoel said. “We have more than 30% growth in 2024 which also increases our profitability. So we have money in the bank to invest in our platform and technology.

He said the move to holding larger funds for customers also makes sense: “If you have a wallet as a central product, then you can connect other services to that wallet as well as payments or cards that people can use to issue virtual cards… Neo bank has an excellent portfolio of services, but we, in particular, take care of the needs of our customers who like to budget, have control, as well as want to have privacy and security.

These are the aspects of privacy and security that he thinks can give an edge to Recharge, going forward, because pre-payment always gives more privacy in some services.

In a statement, Bas Janssen, senior banker Digital and Consumer clients, ABN AMRO, said: “We see great promise in the development of Recharge as they expand their reach to within the global prepaid payment space.”

In 2021 Recharge HISTORY raised a €10 million ($11.8 million) debt financing round led by London-based Kreos Capital, a $35 million Series B round led by new investor SmartFin, and €22 million from Prime Ventures in 2019.