Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
With inflation still stubbornly high compared to previous years and the siren calls of subscription services like Netflix and Spotify still beckoning, consumers have understandably turned to alternative forms of payment to manage their household bills. As a result, online pay-advance platforms have profited.
That’s today’s bet Refillinga key European player in online prepaid payments, which has secured a €45 million loan from ABN AMRO to consider growing the market with a round of M&A, as well as moving into Fintech-style services that could ultimately compete with some of the larger payment platform.
Through a range of digital vouchers from brands including Apple, Google, Spotify, Xbox and PlayStation, as well as cross-border remittances, Recharge is attacking the market from several consumer angles.
He says that he already has strong cash reserves and claims that in 2024 he will achieve a 30% increase in revenue compared to last year, while his goal is to reach more than 100 million euros in revenue in 2025.
With the new funding, there will be substantial wartime procurement funds.
In an interview with TechCrunch Recharge CEO Günther Vogelpoel said, “We see an opportunity to grow faster through M&A, and there are a number of opportunities in other markets and segments that we can consolidate, especially since this industry is still so young.”
The prepaid card market in Europe grew at a CAGR of 7.6% during 2019-2023. It is between 2024 and 2028 as expected register a CAGR of 9.1%, increasing from over $251 billion in 2023 to $395 billion by 2028.
More interestingly, Recharge’s application for an e-money license with the Dutch authorities suggests it has plans to create a more robust ‘Fintech’ style platform.
Vogelpoel said Recharge is “very keen” to evolve into the financial services space: “We are in the process of applying for an e-money license in the Netherlands, which will give us a license for Europe. With that, we can launch our own financial services.” He added that they would be in the market for a company like a wallet or card “that would fit well with our current customer base.”
But what about the technology aspect of this next phase?: “We are a profitable company,” Vogelpoel said. “We have growth of over 30% in 2024 which has also increased 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 could use to issue virtual cards… Neo Bank we have a really good portfolio of services, but we especially cater to the needs of our clients who like budget, control, as well as privacy and security.”
He thinks these privacy and security aspects could give Recharge an edge in the future, as paying upfront often allows for more privacy with some services.
In a statement, Bas Janssen, senior banker Digital and Consumer clients, ABN AMRO, said: “We see great promise in Recharge’s growth trajectory as they expand their reach within the global prepaid space.”
In 2021. Top up previously raised a €10 million ($11.8 million) debt financing round led by London-based Kreos Capital and €22 million from Prime Ventures in 2019.
