SmartPay Ltd Expands Business Operations
SmartPay Ltd Expands Business Operations With 35% Stake in New Transaction Company, Card Processing Services Ltd
Auckland Monday September 25 2006: Prepaid solutions provider SmartPay Ltd (NZX:SPY) is expanding its business operations by taking a 35% investment in Card Processing Services Ltd (CPSL).
CPSL was established by a group of private investors to manage back office transaction processing, data management and payment systems – businesses closely aligned to SmartPay’s existing operations.
Electronic transaction processing is a growth industry, with the banking industry’s two networks currently providing the majority of these services.
SmartPay chief executive, Linc Burgess, says there are excellent growth prospects in other areas within payment infrastructures, both in the private and public sectors, including potentially high volume numbers through retail transaction systems and the internet.
“Payment systems should be presented to offer the consumer various loyalty benefits as well as deliver new efficiencies, costs and time savings,” he says.
“New Zealand is well known for its acceptance of new technologies. Payment models are adaptable in terms of who charges who and how they are billed.”
Last week SmartPay announced the purchase of the software and source code used by the company from its Malaysian based owner, as the New Zealand company expands prepaid payment solutions to drive gift card and voucher based systems for POS and the internet.
Burgess explained that by SmartPay owning the technology from the terminal to the back office, together with the company’s operational expertise, opened up significant opportunities to partner with like minded businesses.
“The investment in CPSL is part of that strategy in developing new business opportunities for SmartPay and sourcing greater earnings potential. We are able to offer the total solution, including electronic transaction processing software systems.”
SmartPay’s operations include the network management of a merchant base of approximately 2500 retailers throughout the country. The business is continually developing its POS terminal software to process a range of prepaid and gift card solutions.
Mr Burgess said SmartPay would nominate two people to the board of CPSL.
ABOUT SMARTPAY LTD
SmartPay Ltd (NZX:SPY) is a leader in the development and supply of innovative electronic prepaid solutions including mobile phones, international calling cards, internet and POS based services, gift cards and a range of other products
As an example of the business in which they operate, the value of the pre-pay mobile and international calling card market in New Zealand is estimated at $500 million and $100 million annually and growing fast.
Established in 2004, SmartPay has signed contract agreements with telecommunications networks and product suppliers including Telecom New Zealand Ltd and Vodafone New Zealand Ltd. The company is also researching and developing potential software business interests in New Zealand and internationally, including markets in Australia and Asia Pacific.
In New Zealand, SmartPay manages a network of merchants who supply products to a wide range of retailers, including a number of high profile, national retail chains and route/convenience store owners and operators.