Looking goodChange wins milestone US$10.5m deal with four New...

Looking good

Change wins milestone US$10.5m deal with four
New Zealand financial institutions
8 June 2022 – Change Financial Limited (ASX: CCA) (Change or the Company) is pleased to
announce it has signed Payments as a Service (PaaS) contracts with three credit unions and New
Zealand’s largest building society to offer direct issuing, processing and card management solutions
via its Vertexon platform.
Change CEO and Managing Director, Alastair Wilkie commented, “We are excited to have secured
four clients who will leverage our Vertexon platform and Mastercard direct issuing in Oceania. The deal
will see us establish new debit card programs with First Credit Union, Nelson Building Society,
Westforce Credit Union and Police Credit Union.”
“With the clients onboarding to Change’s Vertexon platform, we will deliver critical payments technology
allowing the financial mutuals to offer innovative card and payment products, a modern and seamless
digital experience and digital cards to their customers throughout New Zealand.”
“Change is expanding its global capability, and these are the first PaaS clients to leverage our
Mastercard direct issuing and Vertexon platform in the Oceania region. Change has a strong heritage
in Australia and New Zealand (ANZ), and we are proud to be partnering with community focused
financial organisations. There are many credit unions and financial mutuals across ANZ that could
benefit from the Vertexon platform. We are working hard to capitalise on this opportunity in the near
term.”
New Client Wins Add Significant Revenue
The contracts contain upfront implementation fees as well as volume and transaction based fees. Based
on approximately 35,000 existing cards being transitioned across to the Vertexon platform, the
combined estimated total contract value is expected to be in excess of US$10.5m (A$14.6m1
) over the
initial 5-year terms. This equates to anticipated revenues in excess of US$2.1m (A$2.9m) per year once
all four clients complete onboarding and customers are re-carded.
Change will begin onboarding the clients this quarter (Q4 FY22) with launch anticipated in late H1 FY23.
Completion of onboarding and card program transitions are expected in H2 FY23.
Launch of the first card program will trigger the incentive payment from Mastercard (as announced on
31 March 2022) as it represents Change’s first direct issuing client in Oceania.
1 AUD/USD = 0.72
Highlights
• Four New Zealand financial mutuals secured as clients on Vertexon platform
• Total contract value anticipated to be in excess of US$10.5m (A$14.6m) over the initial 5-
year terms, delivering revenue of US$2.1m (A$2.9m) per year
• Over 35,000 debit cards are anticipated to be transitioned to the Vertexon platform
• First clients signed for direct issuing in Oceania, triggering incentive payment from
Mastercard following expected launch of first client in H1 FY23
• Strong market validation of direct issuing strategy and Vertexon platform