Prepaid payments platform Recharge raises €45M to go on M&A spree

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With inflation still stubbornly high in comparison to previous years, and the siren voices of subscription services like Netflix and Spotify continuing to lure, consumers have understandably turned to alternative forms of payment to manage their household bills. As a result, online prepaid payment platforms have benefited. 

That’s the bet being laid today by Recharge, a key European player in online prepaid payments, which has secured a €45 million debt facility with ABN AMRO to look at rolling up the market with a round of M&A, as well as moving into Fintech-style services which could ultimately compete with some of the larger payments platforms. 

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.

It says it already has robust cash reserves and claims a 30% year-on-year revenue growth in 2024, while aiming to reach over €100 million revenue in 2025.

With the new funding, there will be a considerable war chest for acquisitions. 

In an interview with TechCrunch Recharge’s CEO, Günther Vogelpoel, said: “We see an opportunity to grow faster through M&A and there’s a number of opportunities in other markets and segments that we can consolidate, especially as this industry is still so young.”

The prepaid card market in Europe increased at a CAGR of 7.6% during 2019-2023. Between 2024 and 2028 it’s expected to record 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” on evolving into the financial services space: “We are in the application process of applying for an E-money license in the Netherlands, which will grant 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 wallet-like or card-type kind of company “that would have a good fit with our current customer base.”

But what about the technology aspect of this next phase?: “We are a profitable company,” said Vogelpoel. “We have over 30% growth in 2024 which boosted our profit profitability as well. So we have money in the bank to invest in our our platform and technology.”

He said moving into 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 for issuing virtual cards… Neo banks have a really good portfolio of services, but we, especially, cater to the needs of our customers that love to budget, to have control, as well as like to have privacy and security.”

It’s those privacy and security aspects that he thinks might give Recharge an edge, going forward, as pre-payment often affords greater 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 broaden their reach within the global prepaid payments space.”

In 2021 Recharge previously raised a €10 million ($11.8 million) debt funding round led by London-based Kreos Capital, a $35 million Series B round led by new investor SmartFin, and €22 million from Prime Ventures in 2019.



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Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

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