Change Financial continues growth trajectory as annual revenues surge

Demand for ecommerce and digital payments services is spearheading growth for Change Financial, which offers Payments as a Service (PaaS) solutions to banks and fintechs.

Global fintech Change Financial (ASX:CCA) has capitalised on increasing demand for ecommerce and digital payments services, as revenues surged in what it called a “transformation year” for the business.

The turnaround was reflected in CCA’s top-line revenue growth, which surged from US$300,000 in FY20 to US$8.4 million (A$11.3 million) in FY21 on a full year basis.

Change today released its annual report highlighting key appointments, advancements in its technology, strategic acquisitions, investment in sales and business development and a growing international customer base.

The Change payments platform enables customers to offer flexible payment solutions such as virtual cards and BNPL services. Key features were added to its platform during the financial year including a payment testing solution, virtual, debit and credit cards along with digital payment wallets including Apple Pay and Google Pay.

In FY21 Change’s customer base grew to 136 million clients across 36 countries, with more than 16 million cards managed and processed on its platform.

Key appointments and staff increase to support rapid global growth

Change has made several key hires recently to support global growth, including highly experienced payments executive Tony Sheehan who was appointed as Chief Financial Officer.

Nick Beach, who held several senior roles with EML Payments (ASX:EML) has become Senior Vice President of Payment Solutions, while other key appointments have also been made.

CCA’s momentum was also reflected by the growth in its team, which rose 18 to 80 staff during FY21 and now has a global geographical reach across Australia, New Zealand, Dominican Republic, USA, and Greece to service its growing international focus.

The company’s geographical client base is also diverse, with 46% of its financial revenue derived from Southeast Asia, 26% from Oceania, 17% from Latin America, 8% from the USA and 3% other regions.

According to research led by Deloitte, the total addressable market of the target countries within Change’s key focus regions of Southeast Asia, Latin America, North America and Oceania total more than US$10 trillion.

Focus on key sales pipelines

Change is forecasting its sales pipeline to grow in FY22 as it focuses on global business development and sales growth strategies, while capitalising on having large banks and payments brands globally as customers.

Following completion of the technology build of its issuer processing business in the USA, Change finalised its strategic acquisition of Wirecard’s Australian and New Zealand assets in October 2020.

In FY21 Change also completed phase one of a strategy to integrate its existing certified issuer processor and acquired payments management platform.

Progressing through phase two of the integration strategy will see a Customer Ready Platform available in the first half of FY 2022, enabling the company to offer a next generation integrated payment processing and card management solutions platform.

Change to capitalise on growth prospects in FY 2022

Change CEO Alastair Wilkie said FY21 was a record year across all key metrics despite the global pandemic and impacts of political and economic disruption in some regions where their clients are located causing challenges.

He said Change was capitalising on increasing global demand for ecommerce and digital payments services.

“Our clients are determined to improve their customers’ access to innovative payments solutions and keep up with the ever-accelerating trend into digital payments,” Wilkie said.

“Change is uniquely positioned to capitalise on this massive market opportunity, with a focus on growth across our four key regions of Latin America, Southeast Asia, the US, and Oceania. “

This article was developed in collaboration with Change, 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.