Wirecard AG, a leading global payment and issuing company, announced that it has reached a definitive agreement to acquire Citi Prepaid Card Services. Citi Prepaid card services have launched over 2,500 client programs, associated with top companies and brands across the world, primarily in North America.

Subject to obtaining regulatory approvals and other customary closing conditions, closing is expected as early as the fourth quarter of 2016. Wirecard will be assuming all current staff with more than 100 employees at the head office in Conshohocken (Philadelphia) and 20 employees at different international hubs.

Markus Braun, CEO of Wirecard AG commented: “This acquisition extends Wirecard AG’s global presence into the North American market. On an operating level we look forward to sustainably enriching their existing product portfolio via our innovative issuing solutions“ and adds: “We look forward to working together with a highly experienced management team and staff who will contribute their dedicated knowledge with the implementation of complex corporate solutions.”

Francesco Vanni d'Archirafi, CEO of Citi Holdings said, “This transaction is a positive outcome for our clients and employees of Citi Prepaid Card Services which will become part of an industry leader poised for growth. We are especially pleased that all Citi employees supporting this business will have the opportunity to join such an innovative company.”

The customer portfolio of the acquired business consists of leading telecommunication service providers, health sciences companies, global IT and electronics manufacturers, internet and consumer goods corporations as well as public sector clients. The portfolio is largely comprised of incentive and compensation cards as well as corporate disbursement programs.

The acquired prepaid card business will benefit from integrating with Wirecard’s existing global payments platform to expand the features and functionality currently available to their clients around the world.

Global Industry Analytics Inc. (GIA) is forecasting that the global prepaid card market will grow to a volume of USD 3.1 trillion by 2022. One-time and reloadable prepaid cards continue to replace checks and cash as a faster, more cost efficient payment method for consumers, corporate clients and public sector organizations. In addition to enabling financial inclusion in the consumer sector, in business-to-consumer applications prepaid cards drive engagement between organizations and their customers and accelerate the migration to electronic payments.