Findi (ASX: FND) Eyes Expansion and Profit Growth with Revised Interchange Fees

Highlights

• Findi has announced the positive impact of RBI's new interchange rates on the company’s business.
• The company expects a AU$15.5 million revenue boost from the interchange fee increase over the next two years.
• Additional cash flow from the fee increase will be reinvested into capital expenditures and contract expansion.
• Findi's Brown Label ATM contracts are expected to benefit from a higher ‘price ceiling’, driving improved profitability.

Findi Limited (ASX:FND) has announced that the Reserve Bank of India (RBI) recently implemented an important change to interchange rates.

The National Payments Corporation of India (NPCI) has approved an increase in ATM interchange fees for both domestic financial and non-financial transactions. As a digital payments and financial services provider, Findi is optimistic about the positive impact of these revised rates, believing they will play a key role in advancing the company’s financial inclusion efforts across India.

Starting 1 May 2025, the new fees for pan India National Financial Switch (NFS) ATM transactions will be INR 19 (excluding GST) for financial transactions and INR 7 (excluding GST) for non-financial transactions such as balance inquiries.

Findi Eyes Revenue Growth from ATM Interchange Fee Hike

Findi expects a notable boost in revenue, EBITDA, and NPAT from the increase in interchange fees for its White Label ATM business in FY26 and FY27. The full-year impact of the increase is anticipated to exceed AU$ 5.5 million in FY26 and AU$ 10.0 million in FY27.

The company anticipates no additional costs arising from the fee hike, meaning free cash flow will grow in line with the increased revenue, EBITDA, and NPAT.

Findi’s Executive Chairman Mr. Nicholas Smedley emphasised that the additional cash flow will be directed towards new capital expenditures and will help accelerate the rollout of recently secured contracts.

Findi's BLA Contracts to Benefit from Increased Interchange Fee

The recent increase in the interchange fee also establishes a higher ‘price ceiling’ for Findi’s Brown Label ATM (BLA) contracts, which are indexed over time. Effective 1 May 2025, this rise in the interchange fee will naturally elevate Findi’s BLA price ceiling. The company expects to drive improvements in revenue, margins, and overall profitability for the BLA business in the medium to long term.

Shares of FND last traded at AUD 4.56 on 13 March 2025.