Change Financial (ASX: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, which are 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 $14.6 million (US$10.5 million) over the initial 5-year terms.
This equates to anticipated revenue in excess of $2.9 million (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 the late first half of FY23, and completion of onboarding and card program transitions are expected in the second half FY23.
The company said the launch of the first card program will trigger the incentive payment from Mastercard as it represents its first direct issuing client in Oceania.
The terms of each contract are the same for all four clients, to provide direct issuing, processing and card management services in New Zealand to each financial mutual.
“With the clients onboarding to Change’s Vertexon platform, we will deliver critical payments technology allowing the financial mutuals to offer innovative card and payment products, a modern and seamless digital experience and digital cards to their customers throughout New Zealand,” said chief executive officer Alastair Wilkie.
“Change is expanding its global capability, and these are the first PaaS clients to leverage our Mastercard direct issuing and Vertexon platform in the Oceania region.”
Shares are trading 14.5 per cent higher at $0.079.