FFG expands BNPL service in Asia with key distribution deal, shares rip higher
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The deal gives FFG subsidiary Smartfunding direct access to a market of more than 5,000 merchants and 15m consumers.
Tech venture company Fatfish Group (ASX:FFG) continues to build momentum across its core south-east Asian markets.
FFG announced this morning that its subsidiary, Smartfunding Pte. Ltd has entered into a strategic partnership with KryptoPOS, a leading cloud-based point-of sales (POS) software provider that serves more than 5,000 merchants and 15 million consumers in Malaysia and Indonesia.
Shares in FFG continued their strong 2021 rally in morning trade, rising by as much as 17 per cent.
The gains saw FFG shares outperform the broader market, which fell sharply at the opening bell.
Via the agreement, Smartfunding will get significant enhanced distribution access for its BNPL funding platform.
Currently, the company’s BNPL model is focused on B2B channels to help business clients better manage their cash flows.
But with the addition of the KryptoPOS market footprint, it also has the opportunity to extend the service to customers of the more than 5,000 merchants that use the KryptoPOS platform.
As part of the deal, the two companies have entered a revenue-sharing arrangement which will see KryptoPOS receive between 15-30pc of the transaction value generated through the Smartfunding platform operating on its network.
The two sides will also join forces to leverage their enhanced data analytics capability, which will help to improve Smartfunding’s credit screening practices for merchant clients.
Based out of Singapore, Smartfunding is a financial services provider which holds a requisite licence from the Singapore central bank.
FFGs’s board of directors expressed its excitement about the deal, noting it now has direct access to a rapidly expanded addressable market.
The deal will “allow for a wider reach of Smartfunding BNPL services in the Southeast Asian market, and far earlier than the initial marketing plan prepared by the management”, the board said.
This article was developed in collaboration with Fatfish Group, 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.