News

ID Data snaps up CredEcard

08 May 2007 14:14:00

Smart card solutions outfit ID Data is all set to expand into the financial services industry with the acquisition today of pre paid card service provider CredEcard.

The company has committed to forking out up to £725,000 in cash and shares subject to achieving certain performance objectives over the next two years.

"This acquisition moves ID Data up the 'value chain' from being a plastic card and solutions provider into a broader financial services company," said chief executive Peter Cox.

"The CredEcard business will allow us to develop opportunities with existing European customers in retail, government, leisure and banking."

Pre paid cards allow those such as migrant workers to be paid without the need for a bank account, while employment agencies are already paying many casual workers in this way.

The system has already taken off in the US and, while Europe is playing catch up, ID Data bosses say the market is set to explode over here during the next 12 months.

MasterCard reckons there will be 360 million pre paid cards in Europe by 2010.

The company said it will be raising additional funds to allow earlier and more rapid development of the pre paid business.

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