quirion prepaid cards are now available in over 3,600 Edeka stores. For our CEO Martin Daut, the project is a personal matter and another milestone in the mission to democratize investing in Germany. As many people as possible should be able to take part in the capital markets.
When you think of prepaid cards from the supermarket, names like Amazon, Apple or Google immediately come to mind. But vouchers for investing with quirion – how did you come up with that idea?
I had the idea 17 years ago. Back then I was CEO at the online broker Consors. Accounts and securities portfolios are abstract services. I asked myself: how can this be made more tangible? I wanted a product you can actually touch, so that people can relate to it more easily. Nothing is more emotional than something you can hold in your hands! At the time, we put together little packages for opening an instant-access account and offered them through Tchibo. It was pretty complicated to make the offer work. The time wasn't right yet. Today, this can be handled far more easily from a technological standpoint. Prepaid cards can now simply be scanned at the checkout. So we can now even offer a stake in securities through the vouchers.
But buying the prepaid card doesn't automatically invest the amount…
It's still very easy. The cards, with credit of 25, 50 or 100 euros, are activated at the supermarket checkout and can then be used online with quirion. Our systems register each voucher "near time," meaning shortly after it has been paid for. Existing customers enter the voucher code when topping up their portfolio. New customers are first guided through the process of opening a portfolio. A start has been made. It's another step on the road to better investing in Germany.
The prepaid cards improve investing in Germany?
I'm firmly convinced of it! The project is part of our mission to democratize investing in Germany. We believe everyone should have the chance to take part in the capital markets. Investing still puts off too many people. And yet it's so important, for retirement provision for example – especially for the younger generations. Private households in Germany are still hoarding over two trillion euros in current, instant-access and savings accounts. Negative interest and inflation could erode the value of this money by around 20 percent over the next five years. People need to do something for their financial future. The cards also give an impulse to those who haven't yet given the matter any thought. Investing has to become as natural as doing the groceries.
But it's still often said that investing is too complicated for many people…
Yes – but a robo-advisor like quirion clears these hurdles out of the way. With us, you can now get genuine, ETF-based asset management from as little as 25 euros. It wasn't so long ago that asset management was only a topic for "the rich." At one bank or another, you had to bring at least 200,000 euros of "starting capital" to the table. I see it as a moral duty to make investing accessible to as many people as possible. Because investing can help to narrow the gap between rich and poor. Sure, buying a 100-euro card won't secure your retirement all at once. But anyone who acts on the impulse and sets up a savings plan can build up real wealth over the long term. It's also possible to give the vouchers as gifts. Hopefully that will spark an interest in the opportunities of the capital markets, even among those who haven't been using them so far.
So how did the partnership with Edeka come about?
Some time ago, I wrote to five retail companies and told them about my idea. Only two replied. Competition for the prepaid card displays has become very fierce by now. Not everyone can just try something out. The retail floor space in brick-and-mortar stores is calculated down to the last cent. Implementing it isn't so easy either: there are strict legal and regulatory requirements to meet. On top of that, everything has to work technologically. With Edeka, we were fortunate that our contact there understood the idea right away. Together, we're now connecting the offline retail world with our online world. There has already been a lot of praise and great interest from customers and the public. We can sense that people want something like this. And we notice that we've rattled the competition. That's a good thing – after all, something has to move in the world of investing in Germany.
The voucher cards aren't the only new idea you've put into practice at quirion this year. You've also added real estate to the offering for the first time. What's next?
Our next real estate offering is coming soon. Investors will be able to take part in projects that are otherwise reserved for investment professionals. That, too, is part of democratizing investing. We've once again set ourselves a few surprises for 2022. There should be even more ways to use quirion for investing. We'll also keep pursuing and expanding the topic of prepaid cards. My dream would be: our prepaid cards in every store in Germany.
More about the voucher cards and how to redeem them is available here.
