Financial technology company Stargroup Limited (ASX:STL) has signed an agreement with West International AB, a publicly listed Swedish company, to distributed next generation EFTPOS payment terminals and solutions in Australia and New Zealand. The deal fits with Stargroup’s strategy to become the number one ISO in the payment technology industry in Australasia and means it will have control of the source code within its own payment terminals.
Stargroup to distribute next generation payment solutions in Australia and New Zealand
- Stargroup signs a five year distribution deal for EFTPOS terminals and software with West International AB via its 100% owned subsidiary StarApps
- StarApps to release next generation payment solutions and applications in Australia and New Zealand
- StarApps commits to acquire 2,000 EFTPOS terminals per year and to develop unique EFTPOS software for Australian and New Zealand markets
The Board of Stargroup Limited (“Stargroup”, ASX:STL) is pleased to announce that through its wholly owned subsidiary, StarApps Pty Ltd (“StarApps”), it has signed a Distribution Agreement with West International AB (“West”) a public company listed on the Swedish NASDAQ OMX First North Exchange, to distribute next generation EFTPOS payment terminals and solutions in Australia and New Zealand.
Todd Zani, Stargroup’s Executive Chairman and Chief Executive Officer said. “We are very excited about partnering with West for the next generation of payment solutions in Australia and New Zealand. Their technology, and more importantly being in control of the source code within the terminals, gives Stargroup the edge in a number of merchant sectors.”
Stargroup’s objective is to become the largest ISO in the payment technology industry in Australia, controlling not only the “cash in” and “cash out” cycle via its ATMs and Recycler ATMs but to also be a dominant player in the ISO EFTPOS and payment technology industry. The current dominant ISO player has circa 15,000 EFTPOS terminals and the ownership of the source code. The ability to develop API and other open source software with our technology partners and customers is very exciting.
“Our ATM division is profitable and well established and I look forward to cementing our position in the EFTPOS and card payment industry over the course of the next 12 months.
“With circa 900,000 EFTPOS terminals installed in Australia and the industry growing at around 60,000 terminals a year, this is a huge opportunity.”
“Owning the source code will allow us to fast track the finalisation and customisation of our EFTPOS solutions for our technology partners that we have already contracted with and that have over 16,500 member businesses and greater than 45,000 businesses that they assist on a daily basis.”
“I firmly believe we can achieve our aim to be the No. 1 ISO in the EFTPOS and payment industry by the end of 2017.”
Sten Karlsson, CEO of West, said: “I am very proud to start this partnership with Star, Australia’s leading supplier of payment infrastructure. It is a perfect pairing of two companies sharing the same vision for the future of payments. The deal will have significant impact on West’s continued international expansion and growth”.