Currently European region is one of the most promising markets for corporate prepaid cards globally. Europe’s corporate prepaid card market in terms of transaction value is expected to record a CAGR of 17.7% during 2017-2021 to reach US$ 32.4 billion by 2021. Technological advancement coupled with increasing number of millennials entering corporate world is driving the need for employee management in a sophisticated yet convenient manner. Managing employee expenses forms a critical part of the same. Prepaid card services are one of the best practices that can contribute to the cause of increasing employee engagement and satisfaction. In recent times there have been a series of launches from startups and established players, bringing innovative products for corporate consumers. Latest in this trend is the corporate prepaid card solution from Wirecard and AFEX.
German multinational financial service provider Wirecard is set to launch corporate prepaid card solution in association with global payment and risk management company AFEX across Europe. Under this agreement, Wirecard will be issuing virtual and physical prepaid cards, PayFEX, by utilizing AFEX and Global Processing Services technologies which will deal with employee expenditure and payroll solutions.
It is designed for companies in which employees tend to travel on seasonal basis or reside in different geographies wherein the company does not have physical presence. There is no set-up, point of sale or annual charges associated with the card. Charges are applicable for different currency transactions, fund loading and cash withdrawals at ATMs. Online transactions can be made using virtual card. The cards can be managed using single integrated online platform developed by Payment Card Solutions.
It also allows tracking of employee expenditure, putting up limits, adding or withdrawing funds and produce complete reports. Receipts can be uploaded via smartphone on to the platform for expensing purposes and there is provision for adding accounting categories and segregate VAT. Identity management and fraud protection for PayFEX card services is being managed by Global Processing Services along with real time monitoring of expenditure. The cards will be issued in three different currencies, namely, Euros, U.S. dollars and British pounds. Companies with presence in Single European Payments Area (SEPA) will be eligible for the services and it will be marketed primarily across oil and gas, legal, business aviation, travel management, shipping, and construction segment companies.
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