Recharge, a key European player in online prepaid payments, has secured a €45 million debt facility with ABN AMRO to accelerate its growth strategy, which includes rolling up the market with a round of mergers and acquisitions (M&A) and expanding into Fintech-style services.

The company, which offers a range of digital vouchers from brands like Apple, Google, Spotify, Xbox, and PlayStation, as well as cross-border remittances, has seen significant growth in recent years. Recharge claims a 30% year-on-year revenue growth in 2024 and aims to reach over €100 million revenue in 2025. The new funding will provide a considerable war chest for acquisitions, enabling the company to consolidate its position in the market.

The prepaid card market in Europe has been growing steadily, with a compound annual growth rate (CAGR) of 7.6% during 2019-2023. The market is expected to continue its upward trend, with a CAGR of 9.1% between 2024 and 2028, increasing from over $251 billion in 2023 to $395 billion by 2028. Recharge is well-positioned to capitalize on this growth, with its robust cash reserves and expanding service offerings.

In an interview with TechCrunch, Recharge's CEO, Günther Vogelpoel, highlighted the company's plans to evolve into the financial services space. Recharge has applied for an e-money license with the Dutch authorities, which will grant it a license for Europe and enable the launch of its own financial services. Vogelpoel expressed interest in acquiring a wallet-like or card-type company that would complement Recharge's current customer base.

Vogelpoel emphasized the importance of technology in Recharge's next phase of growth, stating that the company is profitable and has invested in its platform and technology. He noted that moving into holding larger funds for customers makes sense, as it would enable the connection of other services to the wallet, such as payments or cards that people could use for issuing virtual cards.

Recharge's focus on privacy and security may give it an edge in the market, as pre-payment often affords greater privacy with some services. Vogelpoel believes that this aspect, combined with the company's ability to cater to customers who value budgeting, control, and security, will drive its growth in the future.

Bas Janssen, senior banker at ABN AMRO, expressed confidence in Recharge's growth trajectory, stating that the company has great promise as it broadens its reach within the global prepaid payments space.

Recharge has previously raised funding, including a €10 million debt funding round led by London-based Kreos Capital in 2021 and €22 million from Prime Ventures in 2019. The latest funding round marks a significant milestone in the company's growth journey, as it seeks to establish itself as a major player in the online prepaid payment market.