NZ should be on very similar margins. The vast majority of the txn costs is switching/scheme fees. They don't vary significantly between countries (issuers are basically the same banks, rebadged)
I wonder if they'll need a new terminal for every client that converts, or if they need existing ones. Either way, the payback on each terminal is sub 9months, so it's not an issue.
At the very least, they've an avenue to add another 7500 (conservatively) terminals at similar margins. $4.5m GP seems very low for this, but that number is still very impressive since it basically drops straight to the bottom.
The best part of the NZ move is removing a single point of failure. A change in Aus regulation won't kill the business completely.
"And the way they have laid out the diagram of leveraging Cuscal for the processing....you would assume they could reduce the cost of sales % with higher volume coming through, but hard to know."
I suspect they've already made gains here. I'm not sure how many times you can go back for more, but it seems they're all over it.
(20min delay)