Woolworths (ASX:WOW) announces payment solutions spin-off

Company News

by Michael Luu

Supermarket operator Woolworths has spun out its internal payments division as a separate payment solutions entity called Wpay.

The new payment technology spin-off derived from the grocery retail giant’s card-processing infrastructure, which was established in 2007.

Wpay claims to currently hold the fifth largest share in the $700 billion contactless payment market, handling an annual transaction volume worth approximately $50 billion.

Woolworths boasts that Wpay’s differentiating factor is the platform’s focus on retail activities, as opposed to just other bank-operated payment services.

WPay will also be available to merchant users, equipping them with payment terminals, fraud prevention and transaction data management.

Shares in Woolworths are trading 1.1 per cent higher at $42.23