Provenco strengthens EFTPOS leadership
9 June 2005
Provenco strengthens EFTPOS leadership with acquisition of EFTPOS customer base from leading dealer
Provenco Payments Limited, a wholly owned subsidiary of Provenco Group Limited, announced today that it had reached agreement with the owners of EFTCO Limited to acquire its current EFTPOS rental base of more than 1,500 terminals.
Provenco chief executive officer, David Ritchie, said the agreement with EFTCO, one of Provenco Payments' leading resellers of EFTPOS terminals, will further strengthen Provenco Payments' leadership position in the New Zealand EFTPOS market.
"There is a significant opportunity to grow sales and upgrade technology of existing EFTPOS terminals, due to new chip and pin security requirements mandated by the banking industry, known as EMV (Europay Mastercard Visa)," said Mr Ritchie.
"EFTCO is one of our largest resellers of EFTPOS terminals and this agreement will provide the owners with additional funds to meet the growing demand for EMV-compliant EFTPOS terminals."
This also gives Provenco Payments the right to acquire new rental customers from EFTCO. These rights allow Provenco Payments to increase its terminal sales through EFTCO's established branch network, while EFTCO retains full ownership.
EFTPOS card technology is changing internationally and will move away from magnetic stripe cards to chip cards in the fight against credit card fraud. Approximately 35,000 older terminals must be EMV compliant by 1 January 2006 with a further 50,000 by 1 January 2008 (the final deadline for all terminals to comply).
Provenco Payments is the leading supplier of EFTPOS terminals to the New Zealand market.