Change Financial Limited (ASX:CCA) is up 14% in afternoon trade after announcing it will rake in $14.6m over the next five years on the back of four different contracts signed in New Zealand for the adoption of the company's Vertexon payments software product.
Vertexon is ultimately a credit card payment processing service, Change Financial notes an existing "strong market validation" supports the adoption of Vertexon.
Over 35,000 debit cards will be transferred to Change Financial's Vertexon platform as part of the company's first direct issuing in the Oceania region, which Change Financial claims will trigger an additional incentive payment from Mastercard.
The NZ players in question are three different credit unions and a building society; First Credit Union, Westforce Credit Union, Police Credit Union and Nelson Building Society.
All parties have executed a contract underpinning a Payments-as-a-Service (PaaS) style arrangement, which ultimately means cash will keep flowing to Change Financial.
Change Financial also continues to negotiate with the parties pricing schedules for access to and use of the NZ domestic EFTPOS system by the end of July this year.
The four financial mutuals in NZ all use Finzsoft Solutions as a banking platform provider, a company with which Change Financial already retains an existing relationship.
Finzsoft will be instrumental in the transfer of debit cards to Change Financial's software.
"We are proud to be partnering with community focused financial organisations," Change Financial management said.
"We will deliver critical payments technology allowing the mutuals to offer innovative card and payment products...and digital cards to their customers."
Part of the forecast $14.6m to be made over the next five years comes in the form of transaction based fees, which the company arrives at by calculating usage rates of the 35,000 existing cards shared between the four NZ partners.
Change Financial is to begin onboarding clients this quarter and will launch late in the first half of 2023.
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