Change Financial books US$740,000 from new Asia-Pacific licensing deal, shares climb
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Along with its latest distribution win, Change continues to move forward on its three-phase product development strategy.
ASX fintech Change Financial (ASX:CCA) has expanded its Asia-Pacific footprint with a strategic partnership and licensing agreement for the Cambodian market.
The deal is with Pi Pay, the leading cashless payments platform in Cambodia which has processed over US$400m in total transaction value since its 2017 launch.
Shares in CCA ticked higher by around 5% following the announcement, to 12.5c.
Change’s technology allows Pi Pay to develop front-end and back-end payment systems on top of CCA’s existing code base for the Cambodian market.
Under the terms of the deal, Pi Pay will licence CCA’s technology to offer digital wallet and payment solutions to Pi Pay’s 360,000-strong customer base in Cambodia. The features licenced are a limited set of Change’s technology offering that sit separate to its core platform.
The deal means Change receives a cash payment of US$740,000 for services already rendered and a one-off perpetual operating licence in Cambodia.
Pi Pay’s network includes major global players such as Alipay and WeChat Pay and it recently completed a merger with SmartLuy PLC, which gives it access to 1,000 agents across Cambodia.
In addition, the licensing deal also aligns with CCA’s broader strategic goal to build a partnership distribution strategy across global markets for its technologies.
Having established the relevant product integrations, the two sides will now work to finalise terms of a non-exclusive reseller agreement for other jurisdictions.
“Change and Pi Pay intend to work together to finalise terms on which Pi Pay will distribute Change’s solutions with a focus on southeast Asia, Latin America and Africa,” the company said.
While the Change executive team has already demonstrated its ability to secure major distribution partnerships, the company also flagged more product development initiatives in the second half of 2021. https://stockhead.com.au/tech/change-financial-delivers-on-quarterly-metrics-as-it-looks-to-expand-its-banking-as-a-service-platform/
Its core focus is on the establishment of a combined platform for certified processing and payments management, with Phase 2 of its three-phase strategy completing later this year and culminating in the rollout of advanced platform features, scheduled for delivery by 2022.
The company has already received “positive feedback and traction from discussions with customers regarding its new BaaS offering”, CCA said.
This article was developed in collaboration with Change Financial, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.