- Change Financial (CCA) signs payments-as-a-service (PaaS) contracts with three credit unions and New Zealand’s largest building society via its Vertexon platform
- Based on approximately 35,000 existing cards being transitioned across to the Vertexon platform, the combined estimated total contract value is expected to be in excess of US$10.5 million (A$14.6 million) over the initial five-year terms
- The company will begin onboarding the clients this quarter with launch anticipated in late H1 FY23 and completion of onboarding and card program transitions are expected in H2 FY23
- Key terms include an upfront implementation fee to be paid during onboarding with monthly revenue to commence on first program launch
- Shares in Change Financial are up 17.4 per cent, trading at 8.1 cents as of 10:18 am AEST
Change Financial (CCA) has signed payments-as-a-service (PaaS) contracts with three credit unions and New Zealand’s largest building society via its Vertexon platform.
The contract partners are First Credit Union, Nelson Building Society, Westforce Credit Union and Police Credit Union — all in New Zealand.
Based on approximately 35,000 existing cards being transitioned across to the Vertexon platform, the combined estimated total contract value is expected to be in excess of US$10.5 million (A$14.6 million) over the initial five-year terms.
This equates to anticipated revenues in excess of US$2.1 million per year once all four clients complete onboarding and customers are re-carded.
The company will begin onboarding the clients this quarter with launch anticipated in late H1 FY23 and completion of onboarding and card program transitions are expected in H2 FY23.
Further, launch of the first card program will trigger the incentive payment from Mastercard as it represents Change’s first direct issuing client in the Oceania region.
Key terms include terms of contracts to provide direct issuing, processing and card management services in New Zealand to each financial mutual, and an upfront implementation fee to be paid during onboarding with monthly revenue to commence on first program launch.
The contracts contain a condition precedent that the parties must agree to additional service and pricing schedules for access and use of the New Zealand domestic EFTPOS system by July 31.
Change CEO and Managing Director Alastair Wilkie said with the clients onboarding, the company will be able to deliver critical payments technology allowing the financial mutuals to offer innovative card and payments products throughout the country.
“Change has a strong heritage in Australia and New Zealand, and we are proud to be partnering with community focused financial organisations.”
The instant issuance of digital cards will be available for consumers at launch and Change is working towards adding digital services like Apple Pay, Google Pay and ethical Buy Now, Pay Later (BNPL) capabilities in New Zealand.
Shares in Change Financial were up 17.4 per cent, trading at 8.1 cents as of 10:18 am AEST.