Out of the five companies, Mastercard received the largest fine of £31.56 million. The other four companies are allpay, Advanced Payment Solution, Prepaid Financial Services, and Sulion.   

The UK regulator said the five firms broke competition law by agreeing not to compete or steal each other’s customers on prepaid cards offered to vulnerable people on welfare payments via local authorities. The cartel meant that the card’s recipients could have missed out on lower priced or better quality products, the PSR said. 

Back in March 2021, the PSR had announced plans to fine the five companies in preliminary findings. On Tuesday, the regulator said it had concluded the investigation. All the parties in question have settled and have admitted to breaking the law. 

“This investigation and the significant fines we have imposed send a clear message that the PSR has zero tolerance for cartel behaviour,” said Chris Hemsley, managing director of the PSR. 

"We will intervene and enforce the law strictly to ensure there is effective competition in payments markets. This case is particularly serious because the illegal cartel behaviour meant there was less competition and choice for local authorities. This means they may have missed out on cheaper or better-quality products which were used by some of the most vulnerable in society.”

Prepaid Financial Services (PFS), a leading e-money institution that specialises in prepaid cards and alternative banking services, has announced the launch of a programme for international relief organisation, Samaritan’s Purse, to provide financial aid to refugees and migrants across Greece.

Samaritan’s Purse has been operating programmes in Greece for over a year, improving conditions in refugee sites and bringing hope and dignity to refugees and migrants by providing water and sanitation infrastructure, shelter, supporting community initiatives, aiding people in accessing asylum services, and distributing emergency food, hygiene kits, and critical relief items.

This new cash programme will allow Samaritan’s Purse to further provide for basic needs by giving refugees and migrants access to prepaid cash cards. Given the varying needs of a diverse population, cash programming allows refugees and migrants to purchase exactly what they need in the local markets in a dignified way that supports resilience.

PFS are acting as the issuer of cards. Samaritan’s Purse is distributing the prepaid cards to vulnerable refugees and migrants across Greece. Of all the methods available for distributing cash, multi-purpose grants in the form of prepaid cash cards are the most appropriate for the context. The prepaid cards provide a secure method of distributing funds as cards have unique PIN codes with ATM and Point of Sale (POS) capabilities.

Noel Moran, PFS CEO said: “As the migrant crisis in Europe continues, PFS is pleased to provide a solution that will help Samaritan’s Purse manage fund disbursements, while also supporting financial inclusion, and giving financial stability to refugees and asylum seekers.

“Although the scheme has rolled out very recently, we are confident that this new method of distributing funds will alleviate pressure on Samaritan’s Purse, letting them focus on continuing to improve conditions and support people in camps.”

Sally Morson, Cash Program Manager for Samaritan’s Purse said: “Until recently, our main support was provided through in-kind distributions. Now, we are moving towards a cash based response where the refugees and migrants will be given the freedom of choice which promotes dignity and resilience. The prepaid cash card is a good modality because it is a secure way within Greece to access what they need in the local markets given the varying needs of a diverse population.”

PFS has a wealth of experience in delivering prepaid solutions that provide financial support for end users of charities, Local Authorities, and National Governments across Europe, offering card programmes that work seamlessly across borders and allowing refugees and asylum seekers to use prepaid cards for financial inclusion.

(Source: Samaritan’s Purse & Prepaid Financial Services)