Wirecard, GPS Team up to Provide New Prepaid Account for Consumers
Fintech companies and challenger banks in the U.K. have a new tool for targeting consumers without traditional banking relationships. Prepaid card issuer Wirecard Card Solutions Ltd., a subsidiary of Wirecard AG, is working with payments processor GPS and Bottomline Technologies to support a digital banking solution called “U,” which was designed by U.K. program manager FFF Ltd.
The U account is the first foray for Wirecard Card Solutions and GPS into agency banking, which will enable clients to provide cardholders with payment functionality including direct debit, Faster Payments and Bacs credits, in addition to standard prepaid account features, according to a Nov. 8 announcement. Bacs is the network behind the clearing and settlement of U.K. automated payment methods, direct debit and Bacs direct credit.
“The product being offered here is revolutionary in the banking space, with account holders managing a unique ‘jam jar’ (ring fence) solution of accounts to offer unrivaled financial control,” Suresh Vaghjiani, GPS managing director (EMEA), tells Paybefore. “Although centrally managed, each account can operate independently and allow budgeting for day-to-day bills and offer financial control beyond traditional offerings. The launch of the product offers a real alternative in the banking space, with clear and flexible pricing that is transparent in how it operates and generates revenue.”
GPS is providing the technology to manage the accounts and process payments on both the Mastercard and Bacs schemes, using Bottomline Technologies as an “access point,” he notes.
David Parker, CEO, Polymath Consulting, says it’s good to see Wirecard launch with FFF the U Account, and join other award-winning light banking products. “Cards like Monese and the newly launched U Account seem to clearly show that there is still a demand in the market for these light banking solutions,” he says.