la Caixa creates Money to Pay, Spain's first bank specialising in prepaid cards

• The bank aims to have 5 million prepaid cards issued in 2016, with new product launches and distribution being extended to retailers.

"la Caixa" has created Money to Pay, Spain's first electronic money operator exclusively for the prepaid card sector. "la Caixa", overseen by Chairman Isidro Fainé and CEO Juan María Nin, aims to drive the expansion of prepaid cards in Spain, which currently represents a growth area, and to reinforce the bank's leading position in the both this segment and electronic banking.

With the creation of Money to Pay, "la Caixa" is targeting a total of 5 million prepaid cards issued in 2016. At the close of 2011 8% of all cards issued by the bank (860,000 cards) were prepaid cards, a figure that was up 50% against the number of prepaid cards in the previous year and maintained double-digit growth rates: in 2010 "la Caixa" had issued around 300,000 prepaid cards.

The emergence of prepaid cards in Spanish retail banking mirrors similar trends seen in other countries, where prepaid cards have established an extensive user base and are available via numerous distribution channels as well as conventional bank networks.

Meanwhile, new payment methods linked to technological development, such as NFC mobile devices and the online wallet, should drive growth in the prepaid card business as well as take-up of the format amongst the public.

New products and more distribution channels for prepaid cards
 
"la Caixa" is now the leading operator in cards of all types, with a market share of 20.9%. The creation of Money to Pay means "la Caixa" will have a specialist team in place to drive the bank's growth in the prepaid segment, both in terms of market share and market volume.

In order to achieve its targets, Money to Pay will extend and improve the range of prepaid products and services available and create new channels hitherto not used in Spain for the distribution of prepaid cards, such as shopping centres, major retail outlets, newsstands and shops.

Money to Pay products may also be contracted at "la Caixa" branches and can be used at the bank's ATMs for transactions and to reload the card balance. Online distribution will also be optimised, with an exclusive website for prepaid products (www.moneytopay.com), as well as a mobile channel especially designed for instant balance enquiries and reloads.

"la Caixa", spearheading the introduction of prepaid cards in Spain

Prepaid cards allow customers to make purchases and withdraw money at ATMs via a preloaded balance. Once the balance is exhausted the card will allow no further transactions until it is reloaded. Customers have control over the amount of money that they wish load to the card and can reload their balances via numerous channels: ATMs, online, mobile... Once reloaded the card can instantly be used anywhere that accepts electronic payment: in retailers or online, ATMs, etc.

Benefits for customers include greater control over spending, both in terms of amounts and what their money is spent on, with the option of holding cards for specific uses: travel abroad, for young people, internet shopping, etc. The cards also allow businesses and institutions to segment spending more efficiently: restaurants, petrol stations, welfare benefits, etc.

Customers do not need to hold a bank account with "la Caixa" to be eligible for a Money to Pay card.

"la Caixa", a pioneering payment systems innovator, was one of the first banks to offer prepaid cards in Spain. The bank is now the leading operator in the electronic banking market, with a total of 12.4 million cards issued, a multiservice ATM network made up of 10,000 machines, 8.6 million online banking customers and 2.6 million mobile banking customers.