New Zealand's SmartPay acquires 35% stake in Card Processing Services

Source: SmartPay

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.

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