Change Payment Solutions Reports 21% Revenue Growth to $18.2M in FY26 Driven by Robust PaaS Expansion

Rapid Growth of Payments-as-a-Service Platform in Australia and New Zealand

During FY26, Change’s Payments-as-a-Service platform was the primary growth engine, with Q4 revenue reaching US$4.6 million—16% higher year-on-year. The Vertexon PaaS solution, which offers embedded payment capabilities to fintechs and financial institutions, processed 6.0 million transactions in Q4 FY26, a 23% increase compared to the prior year. The active card base on the platform expanded to over 150,000 cards in Australia and New Zealand, reflecting 104% growth year-on-year and an 11% increase sequentially from Q3 FY26.

June 2026 marked a milestone with record monthly figures in active cards, transaction volumes, and PaaS revenue. Significant card migration from the Hnry fintech program, accounting for approximately 70% of migrated cards during this period, substantially contributed to platform growth. The expansion of existing fintech client bases demonstrated the scalability of Change’s technology infrastructure. Transaction volumes increased 19% year-on-year in Q4, supporting the company’s narrative of consistent platform maturation.

Shift Toward Recurring Revenue and Improved Gross Margins

In FY26, 73% of Change’s total revenue was derived from recurring income streams, including PaaS platform fees, support and maintenance contracts, and interchange revenue—signaling a structural move toward more predictable and stable cash flows. Q4 FY26 revenue comprised US$2.0 million from PaaS recurring fees, US$1.5 million from support and maintenance services, and US$1.1 million from licence sales and professional services. This increasing recurring revenue share reflects the company’s successful transition from project-based professional services to a platform-centric, higher-margin business model with lower customer acquisition friction.

PaaS revenue alone reached US$2.0 million in Q4 FY26, making it the largest single revenue contributor and underscoring sustained momentum in the subscription model. The revenue model includes fixed and variable transaction fees, value-added services such as fraud protection and digital capabilities, and interchange fees. Expansion of gross profit margins alongside stable fixed cost management delivered operating leverage, with Q4 underlying EBITDA rising 164% year-on-year to US$0.8 million and full-year FY26 underlying EBITDA increasing to US$3.3 million from US$0.2 million in FY25.

Strategic Client Acquisitions and Pipeline Growth in Processing and Issuing

In Q4 FY26, Change secured four new PaaS clients in final contracting stages and launched seven new client implementations across processing and issuing services. The company is onboarding clients across diverse verticals, including kids banking, casual wages payment solutions, and employee benefits. Several major fintech operators are scheduled to launch on the platform during FY27, with target dates ranging from Q1 FY27 through late 2026. These launches cover Australia-focused fintechs, New Zealand financial services providers, and South Pacific market expansions.

The sales pipeline expanded significantly in Q4, with 59 opportunities in qualification, 34 in proposal, 9 in negotiation or trial licence, and 46 in qualification for the PaySim testing and simulation product. Vertexon PaaS deals in Southeast Asia totaled seven contracts worth US$0.6 million closed in Q4, while PaySim generated six opportunities valued at US$0.1 million. This diversified pipeline across established processing and issuing capabilities and the newer PaaS platform indicates growing sales momentum and commercial traction. Product-led sales strategies and ongoing product modernization are driving new customer acquisitions and increased adoption among existing clients.

Improved Cashflow and Strengthened Balance Sheet in FY26

Change generated positive net operating cashflow of US$1.4 million in FY26, a 115% increase over FY25. Q4 alone produced US$0.6 million in net operating cashflow on cash receipts of US$4.1 million. The company ended FY26 with US$3.1 million in cash and an additional US$1.4 million in cash-backed security guarantees related to card issuing activities. This enhanced cash generation reflects operating leverage from increased cash receipts and expanding PaaS gross profit margins combined with a stable fixed cost base.

Staff costs rose 14% year-on-year in Q4 FY26, primarily due to US$0.1 million in one-off restructuring expenses. Despite this, the fixed cost base remained substantially stable throughout FY26, benefiting from cost optimization initiatives in US operations. The improved operating cashflow profile signals Change’s progression toward cash generative operations, a key milestone for growth-stage fintech providers, supporting self-funding of platform development and sales expansion without external capital requirements.

Proprietary Technology Platforms Enable Rapid Payment Scheme Deployment

Change’s competitive edge lies in two proprietary technology platforms developed entirely in-house: the Processing Global platform and the Processing & Issuing platform serving Australia and New Zealand. These platforms accounted for 83% of FY26 revenue through deployed software and APIs, with the remaining 17% from PaaS transaction processing. The architecture is based on global messaging standards ISO 8583 and ISO 20022, ensuring compatibility with major payment schemes and regulatory frameworks.

The company holds Mastercard and relevant regulatory licences, including the Australian Financial Services Licence (AFSL) and Financial Services Provider (FSP) credentials, creating significant barriers to entry. Change’s Vertexon platform is the standard for EFTPOS testing in Australia and is embedded in core processes of five of the top ten global digital payment firms. The platform offers comprehensive services including payments-as-a-service, payment testing, full payment simulation, treasury and fraud compliance, transaction processing across major schemes, physical and digital card issuing with Apple Pay and Google Pay integration, and ATM/POS emulation. This suite enables financial institutions and fintechs to launch payment offerings capital-efficiently without redundant infrastructure.

Strong Three-Year CAGR and Positive Medium-Term Growth Outlook

Change reported a three-year revenue compound annual growth rate (CAGR) of 28% through FY26, driven primarily by PaaS revenue acceleration. Quarterly revenue growth shows consistent scaling, with Q4 FY26 revenue of US$4.6 million reflecting steady execution of strategic goals. The CAGR reflects organic growth within existing clients and successful new client acquisitions across multiple geographies and verticals.

Management anticipates continued PaaS platform expansion to propel revenue growth through FY27 and beyond. Upcoming client platform launches and a robust sales pipeline across processing and PaaS products provide visibility for sustained revenue acceleration. Q4 gross transaction volume of approximately US$175 million on the PaaS platform underscores substantial payment flows, enabling scale economies as the platform matures. Strategic focus on product modernization, new feature development, and Southeast Asia market expansion positions Change for growth exceeding historical industry rates.

Geographic Expansion and South Pacific Market Opportunities

Beyond its core Australia and New Zealand markets, Change prioritized Southeast Asia expansion in FY26, closing seven Vertexon PaaS deals worth US$0.6 million in Q4, validating its international scaling capabilities. A South Pacific fintech is slated to launch on the platform in Q1 FY27, highlighting geographic diversification as a key growth strategy.

This geographic expansion complements product line growth in kids banking, casual wages payments, employee benefits, and personal wealth management verticals. This dual approach reduces customer concentration risk while leveraging Change’s proven platform and payment processing expertise. Although contribution levels from new regions are not disclosed, the pipeline indicates multiple ongoing opportunities across all markets.

Operational Leverage and Path to Sustainable Profitability

FY26 financial results demonstrate Change’s operational leverage as revenue grows against a stable fixed cost base. Underlying EBITDA of US$3.3 million, a 17-fold increase from US$0.2 million in FY25, confirms the company’s transition from investment phase to sustainable profitability. This was achieved despite a 14% rise in staff costs in Q4, reflecting disciplined cost management alongside selective capability investments.

Positive net operating cashflow of US$1.4 million in FY26 enhances financial flexibility for strategic initiatives without capital raises. Stable fixed costs combined with expanding PaaS gross margins create a favorable environment for ongoing profitability improvements. Cost optimization in US operations and recurring revenue from deployed software and APIs position Change to increase earnings power in future periods.

Investor Focus: FY27 Client Launches and Platform Growth Metrics

Investors should monitor the execution of FY27 client launches, including kids banking fintech, casual wages payment platform, and South Pacific fintech implementations targeted for Q1 FY27. These launches will demonstrate Change’s ability to deploy the Vertexon platform across new segments and drive revenue growth. The Q4 migration of Hnry AU and NZ cardholders accounted for about 70% of active card growth; upcoming quarterly metrics will reveal whether organic growth is accelerating independently of large partner migrations.

Conversion of the current sales pipeline—comprising 59 qualification stage opportunities across product lines—into contracted revenue will be critical for medium-term growth sustainability. Planned fintech platform launches and Southeast Asia expansion are expected to contribute materially in FY27. Cashflow trends and gross margin expansion will indicate whether FY26’s operational leverage is sustainable as the business scales. Quarterly updates on PaaS transaction volumes, active card growth, and recurring revenue will provide key insights into platform momentum and business model maturity.