MasterCard to launch Prepaid Travel Card Program

MasterCard International and Travelex, one of the world's largest foreign exchange specialists, are to launch a turnkey prepaid travel card program. The move will allow MasterCard banks that participate in the program to offer prepaid, re-loadable MasterCard branded cards to travelers as a more secure and convenient alternative to travelers cheques and cash.

“MasterCard is committed to increasing its prepaid capabilities, and we're very excited about the travel segment as it allows us to play a greater role in fostering a more efficient payment system for both business and leisure travelers,” said Scott Galit, Senior Vice President for Global Prepaid Product Development, MasterCard International. “Prepaid cards have emerged as a convenient and secure way to carry money while traveling abroad or in the US.”

The cards are loaded in US Dollars and will be accepted at any of the 23.3 million merchant locations around the world that accept MasterCard branded cards. Cardholders will also be able to withdraw local currency using the MasterCard ATM Network, which currently counts more than 1.1 million ATMs around the world. Remaining balances at the end of a trip can either be left on the card for future use, or refunded to the cardholder.

“We are pleased to collaborate with MasterCard to further position prepaid cards as a smart way for travelers to pay,” said Russell Atkinson, Director, E-payments, Travelex. “The combination of our experience in foreign currency exchange and travelers cheques with MasterCard's in-depth understanding of the payments landscape, prepaid expertise, and global brand power make this a compelling product for financial institutions and travelers alike.”

According to the Boston Consulting Group, the travel card market in North America is projected to grow to $7.5 billion in gross dollar volume by 2010.

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