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On 11 March 2019, Novatti Group Limited (ASX:NOV) announced that it has entered into an agreement to become the key supplier of the technology, as well as, be a 25% shareholder in SendFX Pty Ltd (SendFX), a new remittance company. Also, SendFX Pty Ltd, on or around 1 April 2019, is going to launch its commercial cross-border remittance services.
SendFX is a provider of new cross-border payments that aims to disrupt the industry, by providing the first genuine comprehensive currency service to its clients. SendFX will specialize in assisting the SMEs, as well as, individuals to meet their requirements of the cross-border bank-to-bank payment and provide the complete range of FX related products. A variety of travel and relocation services would accompany the product offering made by the SendFX, along with exceptional concierge-style service.
At present, SendFX is building large scale global international payments, as well as, remittance network. For this, Novatti along with the team of SendFX is going to build, the required technology that would provide support to the disruptive remittance and payments services. The services will include Novattiâs dealer, banking, compliance and ledger systems, consumer portal, affiliate portal and related apps. These services will also be aiding and offering expertise with compliance and banking processes from the very first day. Thus, helping the business to launch at a faster rate as well as deliver the technology scaled for growth.
SendFX has entered into a contract with Novatti for a minimum of three years for transaction-based platform service fees. Under the agreement, the minimum payment will be $90,000 per annum. The maximum amount will be of $250k per annum, that will depend on the volume of transactions.
The fees due in the first year, in the form of technology and compliance services totaling $360k would be converted to equity by Novatti. $200k will be used for making further investment and in becoming a 25% shareholder in SendFX. Novatti will also be providing loan for one year, worth $200k to SendFX, on commercial terms.
Through, the efficient industry executives, who have above 20 years of experience in the UK, and Australian foreign exchange markets, SendFX will be deploying business and marketing led model. In the distribution phase, multiple channel partners, enterprises and consumers will come into the picture. Here, the compliance services and cross border payments networks of Novatti technology will be used for providing remittance and international payment services. Many of these customers will then be suitable, for the banking services offered by the SendFX, in the future. This, in turn, will allow SendFX to continuously explore additional relationships within the group as it will progress further.
Other Updates:
On 7 March 2019, NOV confirmed that WeChat pay is now available on the Chinapayments.com that will help in making payment of the Australian bills.
In the last six months, the stock has generated a return of 10%. The shares of NOV last traded at A$0.250 (as on 11 March 2019), down by 9.091% as compared to the previous trading dayâs closing price. The company has a market capitalization of A$43.34 million and approximately 157.59 million outstanding shares.
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