Change Financial Reports A$26 Million Revenue in FY26 with 28% CAGR Driven by Payments Platform Expansion

Proprietary Technology Platforms and Market Positioning of Change Financial

Change Financial operates two in-house developed platforms: Vertexon, a premier card management system for issuing and processing, and PaySim, the default EFTPOS testing standard in Australia. The company holds full Mastercard principal issuer licenses in Australia and New Zealand, along with Australian Financial Services Licence and Financial Service Provider authorizations, establishing it as a fully regulated payment services provider in key regions. These platforms offer comprehensive capabilities including physical and digital card issuance (with Apple Pay and Google Pay integration), transaction processing across major schemes, ATM and POS emulation, and complete payment simulation.

The addressable market for Change Financial spans multiple segments. Vertexon targets small to medium-sized financial institutions such as credit unions, digital banks, non-bank lenders requiring card functionality, and embedded finance opportunities across Australia and New Zealand. PaySim serves a global payments testing market estimated to include over 32,000 potential clients, with Change Financial currently servicing 140+ clients—less than 0.5% market penetration. This positioning highlights the mission-critical nature of its services and significant growth potential.

FY26 Revenue Growth Fueled by Recurring Income and PaaS Expansion

In FY26, Change Financial posted A$26.0 million in revenue, a 21% increase from the previous year. Of this, 83% came from deployed software and APIs, while 17% derived from payment processing and issuing services utilizing the company’s regulatory licenses. Notably, 73% of FY26 revenue was recurring, including Payments-as-a-Service transaction fees and support and maintenance revenue, with quarterly recurring revenue contributions ranging between 70% and 76%. This recurring base enhances revenue predictability and reduces reliance on one-off services.

The company achieved a three-year revenue CAGR of 28% from FY24 to FY26. Underlying EBITDA surged 17-fold year-on-year to A$4.7 million in FY26, reflecting improved operational leverage as transaction volumes increased. Operating cash flow reached A$2.0 million, demonstrating that revenue growth is translating into positive cash generation. This profitability trajectory distinguishes Change Financial from earlier-stage fintechs and indicates maturation alongside sustained growth.

Accelerated Payments-as-a-Service Transaction Volumes and Active Card Growth

During FY26, the Payments-as-a-Service platform processed A$630 million in transactions, a 16% year-on-year increase. Transactions totaled 21.4 million, up 17%, while active cards surged 104% to 150,000. This growth evidences strong adoption of the Vertexon platform by financial institutions and fintechs in Australia and New Zealand as they migrate customers and scale card programs. The faster growth in active cards relative to transactions suggests deeper client penetration and successful onboarding of new institutions.

Currently, nine PaaS clients are live and transacting, with four onboarding and another four in final contracting stages. This pipeline indicates significant upside as these clients go live and increase transaction volumes. The company expects continued volume growth driven by new client acquisitions and existing client scaling, confirming that FY26 figures represent early-stage market penetration with substantial revenue visibility.

PaySim’s Embedded Market Role and Global Client Base

PaySim is the default EFTPOS testing standard in Australia, embedded in the core validation processes required by payment scheme participants. This regulatory entrenchment creates a competitive moat and lowers client switching risk. The platform serves over 140 clients globally, including five of the top 10 digital payment companies, underscoring its critical role in the payments ecosystem. Despite this, PaySim holds less than 0.5% market share in a global payments testing market estimated at over 32,000 potential clients.

New PaySim license sales typically range in the low six figures (AUD), reflecting its pricing and value proposition. The global payments testing market represents a multi-billion-dollar opportunity, with significant room for organic growth. Change Financial’s existing offices support global client delivery without major infrastructure expansion, positioning PaySim for scalable growth through increased adoption.

Favourable Card Payment Market Trends in Australia and New Zealand

Card payment markets in Australia and New Zealand are experiencing sustained growth driven by the shift from cash to digital payments. In Australia, debit card payment value grew at a 12.8% CAGR from FY20 to FY24, with forecasts projecting 11.8% annual growth through FY28. Credit card payments grew 6.8% annually from FY20 to FY24, with 4.2% forecasted growth through FY28. These rates outpace inflation and GDP growth, reflecting structural shifts favoring digital and card payments over cash and cheques. This trend benefits Vertexon, which powers card issuing and processing for smaller financial institutions and digital banks capitalizing on these changes.

The ANZ banking sector is dominated by major banks, leaving significant opportunities for non-traditional issuers, digital banks, and credit unions to gain market share using modern, capital-efficient platforms like Vertexon. Having validated product-market fit in New Zealand, Change Financial is targeting expansion into the larger Australian market, focusing on credit unions, small banks, digital banks, and non-bank lenders seeking card functionality or white-label prepaid card solutions.

Comprehensive Regulatory Licensing and Operational Framework

Change Financial holds all necessary regulatory licenses to operate Vertexon in Australia and New Zealand, including an Australian Financial Services Licence and Financial Service Provider registration in New Zealand. It is also a Mastercard principal issuer in both countries, enabling direct card issuance and network interfacing. These licenses create significant barriers to entry and provide regulatory assurance to clients.

The company’s investment in compliance infrastructure, governance, and operational controls meets stringent regulatory requirements including prudential management, anti-money laundering, sanctions screening, and data security. This regulatory framework creates switching costs for clients, reinforcing long-term customer retention and revenue stability.

Strong Client Relationships and Multi-Year Contract Structures

Change Financial’s institutional clients typically engage under contracts spanning three to five years, offering revenue visibility and minimizing churn risk. The embedded and critical nature of its services—card processing, issuing, and payments testing—creates high switching costs due to technical integration complexity and regulatory approvals. This fosters customer loyalty and pricing power.

The company maintains long-term partnerships with two of the largest Philippine banks, demonstrating Vertexon’s scalability and reliability across diverse geographies and client sizes. These marquee clients serve as references for prospective customers and support predictable recurring revenue growth through contract renewals.

Expansive Market Opportunities in ANZ and Globally

Vertexon targets a large market of small to medium financial institutions, credit unions, digital banks, and non-bank lenders in Australia and New Zealand that lack proprietary card infrastructure and face competitive pressures to offer modern payment services. Vertexon provides a capital-efficient, compliant alternative connected to major payment schemes. The Australian card payments market is forecasted to grow substantially through FY28, supporting ongoing demand.

PaySim addresses a distinct global opportunity in payments testing and certification. With over 32,000 potential clients worldwide and current penetration below 0.5%, the platform has significant room for organic growth. As global payment volumes rise and regulatory scrutiny intensifies, demand for testing solutions like PaySim is expected to increase. Expansion into adjacent markets and schemes is underway, with new license sales typically in the low six-figure range, indicating substantial revenue potential from increased market share.

Growth Catalysts and Investor Focus Areas

Key growth drivers include scaling the Payments-as-a-Service platform as contracted clients go live and existing clients increase transaction volumes and cardholders. The four clients in contracting and four onboarding represent near-term revenue catalysts. Continued product development and sales efforts aim to accelerate client acquisition and feature delivery. Increased adoption of Vertexon by smaller financial institutions and digital banks in Australia offers multi-year growth potential.

Investors will monitor onboarding progress of clients in contracting and onboarding phases, quarterly updates on active cards, transaction volumes, and transaction values for growth visibility. Announcements of new customer wins, especially among large institutions or prominent digital banks, will validate market fit. Expansion of PaySim into new markets and additional testing capabilities will signal progress in the global payments testing opportunity.