Barclaycard has made its first foray into the
commercial prepaid market with the launch of a corporate prepaid
card.
The business has been trialling the product
with a number of UK-based businesses, offering payroll, petty cash
and public sector services. Barclaycard is one of only two
businesses to have been given preferred provider status to Local
Authorities under the Government Payment Card Programme Three. Jim
Wadsworth, head of prepaid at Barclaycard, told CI that
the corporate and government arenas offered the biggest
opportunities for prepaid issuers.
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The product generates revenue through
interchange from point of sale transactions and from ATM withdrawal
fees. Wadsworth said Barclaycard would not charge load fees on the
product and the corporates themselves would also absorb some of the
programme fees.
He said the business was currently working
with employment agency Adecco to try and reduce its reliance on
cheques it was using for petty cash purposes to their local
offices.
Barclaycard’s global commercial payments
director Dennis Bauer added cheque use in the UK is falling at 12
percent per year, and prepaid is well positioned to replace this in
the commercial environment.
“Barclaycard Prepaid has been invaluable in
not only helping us to reduce our dependency on cheques, but also
in enabling us to improve efficiencies and increase control over
spend. Given our national footprint, the added ability to control
and monitor this process centrally has proved incredibly beneficial
and efficient,” said Simon Meyrick, treasury manager, Adecco UK and
Ireland.
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