For everyone's benefit, that estimate is basically assuming that SPX could earn about 1% fee on the full turnover of Capricorn. In FY22, their annual report stated that their members purchased near $3bio from preferred suppliers. If all of these payments were charged 1% then the related revenue stream would be $30mio per annum / $7.5mio per quarter. From there you can make your own assumptions on the actual fee and how much SPX will actually earn from that (negotiation with Capricorn) and how much the cards company will let SPX keep. Key unknown is how much of these payments are processed with cards as opposed to bank transfers. Anyway, it is definitely has the potential to be a game changer. But we have heard it before and yet still don't know why this established relationship has not led to pocketing payment revenues until ... well, we still don't know when...
SPX Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
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