- Shares in payment specialist OFX Group (OFX) surged today after the payment specialist struck a partnership with tech giant WiseTech (WTC)
- Under the deal, WiseTech will make OFX its preferred provider for international payments
- According to OFX CEO Skander Malcolm, today’s deal will streamline international payments for WiseTech customers and save them money
- The deal will only officially launch in 2022 and will last for three years
- Importantly, OFX says the deal will bring in at least $5 million in fee and trading revenue and deliver “material” earnings growth
- Investors seemed impressed with the deal, with OFX shares closing 9 per cent higher at $1.33 a pop
- WiseTec shares gained a per cent to close at $31.40
Shares in OFX Group (OFX) surged today after the payment specialist struck a partnership with tech giant WiseTech (WTC).
Under the partnership, Richard White’s supply chain software company will use OFX as its preferred provider for international payments.
OFX said its payment technology will help WiseTech make simple and efficient international payments at highly competitive rates.
The company explained that by integrating OFX’s software with WiseTech’s CargoWise logistics platform, WiseTech customers will be able to make easy international payments in over 55 currencies.
Under the deal, OFX will manage all on-boarding and transaction compliance. The payments company will also provide localised customer service 24 hours a day.
According to OFX, today’s deal will bring in at least $5 million in fee and trading revenue and deliver “material” earnings before interest, tax, depreciation and amortisation (EBITDA) growth.
The partnership will only launch in the second half of 2022, but marketing for the project will begin in late-2021.
OFX CEO and Managing Director Skander Malcolm spoke highly of the company’s new partner, saying WiseTech is dedicated to improving customer experience and providing great value.
“By integrating into WiseTech’s CargoWise platform, we not only make the international payments experience more streamlined for CargoWise customers but may also save them money,” Skander said.
“Deploying our world-class risk management and handling the compliance risk, will enable WiseTech to invest in an enhanced customer experience, and further organic growth,” he said.
WiseTech’s Founder and CEO, Richard White, said one of his company’s priorities is “productivity at the centre of everything”.
“It is especially pleasing that we are able to do this with international payments and exchange rate management by partnering with another Australian technology company operating globally,” Richard said.
“Integrating this offering within CargoWise drives customer value and makes strong commercial sense,” he said.
Investors seem impressed with the deal, too, with OFX shares up 9.02 per cent at market close and worth $1.33 each. WiseTech shares gained a per cent and closed at $31.40.