Change Financial (ASX:CCA) inks deal with Mastercard

Image Source: Drudoran | Megapixl.com

Highlights

  • Change Financial and Mastercard have inked a six-year partnership for direct issuance in New Zealand and Australia.
  • Mastercard will give a monetary incentive of US$1 million (AU$1.4 million) to Change Financial.
  • Oceania is another important growth market for the company, accounting for 33% of its customer base and 29% of its revenue.

Shares of Fintech firm Change Financial Limited (ASX:CCA) jumped 14% after the business struck a financial deal with Mastercard, an American financial services business.

Change Financial Limited is a global fintech that uses scalable and innovative technology to offer testing to fintechs and banks, card issuance and tailored payment solutions. Over 147 clients in 41 nations rely on the firm’s innovative technology. Oceania is another important growth market for the company, accounting for 33% of its customer base and 29% of its revenue.

While the financial sector had a 13% increase in a year, the firm experienced a 12% decline. The downward trend has persisted in the last six months, with the share price plummeting by 12% and 11% on year to date (YTD). In recent times, Change Financial has recovered from a protracted negative run by climbing 22% in one month.

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However, CCA is heading opposite to S&P/ASX 200 Financials [XFJ], which plunged 0:44% to trade at 6,816.00 points.

Meanwhile, riding high on the announcement, the stock of the Company, CCA, was spotted trading 14.117% higher at AU$0.097 per share at 2:00 PM AEDT. It closed the session 2.3% up.

Good read: CBA, MQG, WBC, ANZ: A snapshot of ASX banking shares’ last month performance

Strategic partnership to foster growth

Change Financial Limited, a global fintech and payments as a service (PaaS) provider, has signed an exclusive 6-year direct issuance partnership deal with Mastercard in New Zealand and Australia. According to the terms of the agreement, the company would be able to issue debit and prepaid cards from Q4 FY22.

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Furthermore, this deal comes on the heels of the firm’s recent launch of Vertexon, its PaaS service for New Zealand and Australian customers. Vertexon effortlessly integrates with a firm’s core systems, allowing them to deliver digital and physical card solutions to their clients quickly. Vertexon also offers additional features like integrated loyalty programmes and transaction processing.

According to the agreement, Change will receive a monetary incentive of US$1 million (AU$1.4 million) from Mastercard when the first direct issuance program launches in H1 FY23. Change’s PaaS solution will benefit from the partnership with Mastercard regarding relationships, technology, and data.

However, Change is gearing up to offer direct issuing services in New Zealand and Australia. Thus, an Australian Financial Services Licence application is underway, and regulatory clearance for New Zealand has been given.


 


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