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volume 8 • fall 2015
based program manager Tuxedo Money Solutions. “Prepaid travel cards have been in the market for more than 10 years now, and [the segment] is still seeing category growth of 20 to 30 percent each year,” Currie says.
The foundation of Tuxedo’s travel card solution is its proprietary eccount platform in which all funds loaded by the consumer remain in the digital account until the cus- tomer transfers the funds onto his card via Web, text or mobile. This method ensures that if a customer loses his card, only the funds made available at that point in time could be accessed. While travel is Tux- edo’s focus, Currie notes that the company is exploring other rela- tively untapped verticals in the country, such as corporate T&E solutions and tying prepaid to loyalty programs.
“Prepaid travel cards are becoming increasingly popular in Australia, where we have seen 70 percent annual growth in this category since 2013,” adds MasterCard’s Cart- wright. “In fact, 1 out of every 5 dollars Australians spend overseas on their MasterCard cards is now on a prepaid travel card.”
Cartwright points to cards like the MasterCard-branded Qantas Cash Card, which offers incentives for cardholders. The airline card earns consumers one Qantas Point for every $1 of eligible spend in foreign currency, in addition to the ability to lock in exchange rates and no currency
conversion fees. Qantas points can be redeemed for eligible flights, flight upgrades and gift cards, among other perks.
American Express has offered
the American Express GlobalTravel Card in Australia since 2011 and has seen consistent growth since launch, according to Dinopoulos. The card is available in three currencies: U.S. dollars, euros and British pounds. Customers value the security, convenience of use
at the POS or ATM, and the low fees, he says. The card has no inactivity or cross-currency con- version fees and the funds never expire. Cardholders also have access to American Express’ Glo- bal Assist Services and emergency funds at any time when overseas.
Peter Colbert agrees prepaid has found its niche with prepaid travel cards in Australia. Colbert is founder
and CEO of Australia-based The Card Group, which provides a software-as-a-service card manage- ment platform, enabling clients to offer a variety of customized pre- paid card, mobile and wearable products. Colbert helped launch the Citibank Travel debit card and the Macquarie Bank Travellersxpress reloadable prepaid card.
The Card Group also is targeting sporting organizations with cards that combine membership, pay- ments and loyalty. Two programs
in the market now are in association with National Rugby League clubs Manly-Warringah Sea Eagles and South Sydney Rabbitohs, which have gotten very positive feedback from fans, he says. The Sea Eagles Visa Prepaid Card, for example, provides 5 to 20 percent cash back on purchases from participating retailers. The cash back cardholders earn from those purchases
ContaCtless Boom Prelude to moBile Wallet adoPtion?
500,000 contactless terminals—approximately 56%—of more than 890,000 terminals in the country as of June 2015, according to Australian Payments Clearing Association data.
60% of in-person Visa transactions are contactless. 135% growth in MasterCard contactless transactions
processed in 2014.
45% growth in unique MasterCard contactless users.
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