Earthport is experiencing strong business growth in the first quarter of the calendar year, fuelled by the successful launch of several new clients via its payments gateway.
After solid improvement in transaction volume for the month of December 2006 which was 38% higher than the comparable period of December 2005, transaction volume has continued to accelerate, with January 2007 transaction volume more than doubling, by 111%, and February 2007 up 122% versus the prior year.
Earthport's CEO, David Fife commented, "Since my arrival in November of 2006, we have been incredibly busy at Earthport. Transaction volume for the month of February 2007 was 60% higher than for the month of December 2006. We have strengthened the balance sheet through a fund raising in which I participated, completed our migration to a channel partnership sales strategy - leading to signed contracts with Giact Systems and Virtual Automated Technologies (VAT) and finished three new upgrades to our Earthport Payments Platform, including the first phase of our implementation of SWIFT. Earthport is the first payments company that has been admitted to SWIFT. As part of our efforts we have brought revenue from Foreign Exchange (FX) into the business model. As we concentrate on international money movements this promises to become a significant addition to our transaction revenues."
In addition to the existing client base from which revenue is rising as new products and territories come into play, Earthport now has a strong pipeline of signed contracts to provide payment services scheduled to go live between now and the end of the fourth quarter of the financial year (30 June 2007). Following the signing of Giact (RNS 11 December 2006) and VAT (RNS 10 January 2007), both partners have introduced transacting clients to Earthport and both have further clients wishing to use Earthport's services.
Mike Harrison, Earthport's Executive Chairman commented, "Taking a conservative view of what our channel partners are forecasting to us, we should see an additional 100,000 transactions per month by June 2007. The potential monthly transaction volume of our existing contracts coupled with the potential transaction volume through our signed channel partners approaches 1,000,000 per month. With Safepay Solutions due to come on-line via Giact in the next week and Nu Skin now live and transacting, we are just at the beginning stages of a period of exponential growth for the Company."
Earthport has developed and paid for a banking and technology platform which is now in the early stages of commercial use for transforming the traditional payments model from a cross-border transaction service to a global liquidity-management driven model, thus reducing fees and settlement times for sending money around the World. The Company's main asset is a global network of segregated trust accounts (ability to move other people's money), which facilitates making local payments for international money transfers in 190 countries in 19 currencies.
David Fife, Earthport's CEO remarked, "Our presence in local markets and our ability to settle in local currency is at the heart of our value-add. We function, in some respects, as a single, global multi-currency account, helping middle-market companies bank globally. My confidence in the business is underlined by my personal investment in the Company."