London- and Amsterdam-based FinTech Recharge.com has launched in Australia, the company announced Monday (March 21).
The firm is best known for selling digital gift cards for popular brands such as Spotify, Netflix and Xbox. The move comes as the gift card and buy now, pay later (BNPL) sectors are undergoing regulation changes.
It’s easy to see why Recharge is expanding down under. Digital tech has surged as 55 million non-cash payment transactions totaling $650 billion occur daily.
Australia is home to some of the world’s largest BNPL firms. It’s where Afterpay is headquartered and controls nearly 70% of the BNPL market. It boasts more than 16 million international customers. Of that number, 3.3 million are in Australia.
“The pandemic has increased the human need for connection, often through entertainment and gaming, and we are proud to be helping consumers to access the things that matter to them while remaining secure online and within household budgets,” said Günther Vogelpoel, CEO of Recharge.com.
Founded in 2010, Recharge said it is gaining ground in the branded payments sector. The $3 billion industry has is being heavily disrupted by digital. The growth of digital gift cards that can be delivered instantly has been fueled by smartphones, eWallets and other alternative payment methods as well as the pandemic.
Earlier this month, PYMNTS reported BNPL continues to gain popularity across all age groups, and U.S. consumer use in 2021 was up 81% from 2020. Most of that growth came from younger age groups.
Millennials comprised 40% of BNPL users in 2020, the largest share of users by age group. Generation Z consumers are expected to catch up to millennials and already adopt BNPL at a higher rate than millennials.