• Change Financial (Change) and Fintech Actuator are partnering with Mastercard to launch an incubator program for Australian fintechs to trial prepaid card solutions.
• Under the partnership, Change will issue Mastercard prepaid cards and Fintech Actuator will act as the program manager to assist fintechs with onboarding, scope and design.

August, 1st 2023: Brisbane-based global fintech and payments as a service (PaaS) provider, Change Financial, has partnered with Mastercard and Fintech Actuator to make card programs more affordable and accessible to local fintechs and startups.

Under the program, Australian companies will be able to run small scale prepaid card solutions to test their products in market, without the cost and extensive processes involved in launching their own custom card programs.

Chief Executive Officer of Change Financial, Tony Sheehan, said the partnership was one of the first of its kind in Australia and will nurture startups by providing greater access to enabling card programs, previously unattainable.

“Australia continues to be a popular global fintech hub and we see many of these new businesses unable to complement their product offering with a card program because they don’t have the capital, expertise or understanding of the process,” Mr Sheehan said.

“This partnership with Mastercard and Fintech Actuator will significantly reduce these barriers to entry for startups creating greater opportunities for local fintechs.”

The advantage of the program is that it will offer low-cost onboarding and holistic support and guidance services throughout the establishment, testing and rollout stages.

Dan Martin, vice president and head of digital partnerships, Australia at Mastercard, said that as the fintech market in Australia continues to evolve and expand, collaboration between likeminded organisations can drive real impact in helping new entrants scale quickly.

“Speed to market, testing and increased agility are paramount in driving innovation and propelling smaller fintechs forward. Mastercard’s aim is to foster an ecosystem that allows fintech startups to thrive, contributing to the overall advancement of the Australian fintech industry. Mastercard supports fintechs with the industry experience, technology and connections that it has built across many decades,” said Martin.

Each program will run for between six and nine months and at Mastercard and Change Financials’ discretion, fintechs will have the opportunity to roll out a prepaid card program that is serviced through Change Financial and Mastercard.

Fintech Actuator’s Tim Boucaut commented “Startups and many smaller companies don’t meet the scale and volume requirements to launch a card program, and this partnership changes that. By guiding businesses through the process and providing support to test and validate an idea, we are enabling more local innovations to successfully launch in the ever-growing payments space.”

The program will commence in September 2023.

You can find more information at https://www.fintechactuator.com/

Change Financial Chief Product Office, Vinnie D’Alessandro wrote an opinion piece for Dynamic Business about how Australian fintechs can lead the way in the US payments space.

The US is a key player in the global financial system. Yet it appears to be lagging behind the global frontier when it comes to adopting modern payment solutions.

Vinnie D’Alessandro

Check out the article here https://dynamicbusiness.com/leadership-2/expert/opinion/do-aussies-have-the-key-to-unlocking-payment-potential-in-the-us.html

When it comes to choosing a new card payment platform, there are certain technical features that are essential for ensuring a smooth, convenient, and secure experience. Here are the five essential technical features to look for in a card payment platform:

Features

1. Integration with digital wallets: Digital wallet platforms like Apple Pay, Google Pay, and Samsung Pay are becoming increasingly popular, and it’s important to choose a card payment platform that can integrate with these systems. This will allow you to make payments using your digital wallet, which can be more convenient and secure than using a physical card.
2. APIs for mobile development and integration: If you’re a developer or you plan to integrate the payment platform into your own mobile or web-based application, it’s important to choose a platform that offers APIs (Application Programming Interfaces) for easy integration. This will allow you to customize the payment experience and build a seamless integration into your application.
3. Cardholder self-service: To give cardholders more control and convenience, look for a card payment platform that offers self-service features such as the ability to reset a PIN, block a lost or stolen card, or pause a card temporarily. These features can be especially useful in the event of a lost or stolen card, or if you need to take a break from using your card for a while.
4. Security and fraud protection: Finally, it’s essential to choose a card payment platform that offers robust security and fraud protection measures. This can include features like 3D Secure (3DS), which is a security protocol that helps to protect online card transactions, as well as encrypted data transmission, secure servers, and regular security updates.
5. Virtual cards: Another useful feature to look for is the ability to create virtual cards. Virtual cards are digital versions of physical cards that can be used for online transactions, and they offer a number of benefits. For example, you can create separate virtual cards for different types of purchases or for different family members, which can help to keep your finances organized and separate. Virtual cards also offer an extra layer of security, as they can’t be lost or stolen like physical cards can.

Vertexon: delivering modern card payment solutions

Vertexon is a Payment as a Service (PaaS) platform developed by Change Financial. It is designed to provide modern and digital payment experiences for businesses and consumers.

One of the key features of Vertexon is its integration with digital wallets. This allows users to store and manage their payment information in a digital wallet, such as Apple Pay, Google Pay or Samsung, and make payments online or in-store using their mobile device.

Vertexon also includes APIs (Application Programming Interfaces) that allow businesses to integrate the platform into their own systems and processes. This can enable them to create customised payment experiences for their customers.

Cardholder self-service is another feature of Vertexon. This allows cardholders to manage their own card and PIN, and check their transaction history.

Security and fraud protection are also important considerations for any payment platform. Vertexon includes multiple layers of security to protect against fraud and unauthorized transactions, including encryption, secure authentication, and real-time monitoring.

Finally, Vertexon supports the use of virtual cards. Virtual cards can be especially useful for businesses that need to make frequent online payments, as they can be easily generated and managed through the Vertexon platform.

Are you looking for these essential features to modernise your card platform, reach out to our sales team.

To see all the features of Vertexon, check out our roadmap.

Change Financial CPO, Vinnie D’Alessandro made an appearance on ausbiz with Kyle Rodda to discuss payments in the Australian, New Zealand and US markets.

https://www.ausbiz.com.au/media/the-state-of-payments-in-australia?videoId=25918&sectionId=1885

Having attended my first Customer Owned Banking Association conference (COBA) with Change Financial, I was hoping for a positive experience after such a long break between in person conferences and my expectations were far exceeded.

The Customer Owned Banking Association put on a wonderful event , one of the best I’ve attended in my career.  Aside from the professionally executed conference, panels, sessions, food, and entertainment, it was the COBA members that had the greatest impact on me.  They were open, positive, engaging, and curious.

The COBA 2022 conference panels, sessions and workshops centred around three  key themes; Smart. Strong and Sustainable.

Whilst that is  an accurate description of COBA member banks,  I took away a different set of themes from the members in attendance: Enhance,  Compete and Grow.

Enhance: Not surprisingly, COBA members were focused on their customer experience, it was central to almost every conversation I came across. There was an acceptance from members that their products and services needed to be enhanced.  COVID has been a catalyst for greater investment in remote and digital bank services and COBA2022 showcased many of these new capabilities that  banks can  deliver to their customers.

Compete: COBA members are often competing for the same customers as the big 4 and larger tier 2 banks.  Customer owned banks can’t compete with the big guys in terms of budgets, but through partners and SaaS offerings, there is an opportunity to match their services and provide a better customer value proposition. A great comment from one of our customers I spoke to was “I want to own my own destiny for card payments, but I don’t have to do it all on my own”. 

Grow: Nearly every bank I spoke to wanted to grow their customer base. In particular, focus on new, younger customers to drive a sustainable future.  Whilst murmurs of mergers and acquisitions continue, COBA members are keen to enhance their services, compete with the bigger players and ultimately grow their customer base.

The Change team was both encouraged and inspired  by the energy, enthusiasm and positivity from the COBA team and their members.  We’re looking forward to supporting the transformation journey for customer owned banks as they continue to enhance, compete, and grow to better rival the major banks in the future.

Change Financial (CCA) has announced it has been granted a Mastercard Principal Issuer licence for Prepaid and Debit cards in New Zealand.

Being a Mastercard Principal Issuer allows Change to deliver card programs to banks, credit unions, fintechs and other businesses, looking to offer digital and physical card payments to their customers.

In March 2022, Change announced an exclusive agreement to partner with Mastercard to issue prepaid and debit card products in Australia and New Zealand. 

Change CEO, Alastair Wilkie commented, “We are excited to be a Mastercard Principal Issuer in New Zealand for Prepaid and Debit cards. To be granted our licence less than 6 months after our Mastercard partnership announcement is a wonderful result for both parties.” 

Wilkie continued, “Our business has a long New Zealand heritage and it’s a proud moment for our business, especially our Auckland based team members. Our new capability will allow us to lower the barrier of entry for New Zealand banks, credit unions, fintechs and business to deliver innovative card solutions to their customers.”

Change also recently announced they would be issuing Mastercard debit cards for First Credit Union, Nelson Building Society, Police and Families Credit Union and Westforce Credit Union.

• Change is powering card capabilities in the underserviced New Zealand market, providing mutuals greater access to digital and card payment solutions.
• More than 35,000 debit cards across four programs will be issued on the Mastercard network and processed through Change’s Vertexon platform.
• The announcement comes as New Zealand’s e-commerce market is projected to grow by 38% before 2025.

Australian based global fintech and Payments as a Service (PaaS) provider, Change Financial (Change), announced it has partnered with fellow fintech solutions provider Finzsoft to sign agreements with four New Zealand mutuals to offer direct issuing, processing, and card management solutions via its Vertexon platform. This partnership makes card payment solutions more accessible to the underserviced New Zealand payments space.  

The instant issuance of digital cards and integrated cardholder API software are not widely accessible in the New Zealand market and First Credit Union, Nelson Building Society, Westforce Credit Union and Police Credit Union will leverage these technologies using Change’s Vertexon platform to improve efficiency and the overall user experience. 

This follows Change’s recent partnership announcement with Mastercard, enabling them to deliver direct issuing capabilities for their Australian and New Zealand clients. More than 35,000 debit cards will be issued on the Mastercard network and processed through Change’s Vertexon platform. 

Demand for digital and physical card payments capabilities in New Zealand is set to rise as their e-commerce market is projected to grow 38 percent between now and 2025, reaching $8.8 billion (USD), according to the March 2022 Global Payments Report. In addition to this, the report reveals buy now, pay later (BNPL) is the fastest growing online payment method and set to account for 17 percent of e-commerce transaction value by 2025.  

Change CEO and Managing Director, Alastair Wilkie said, businesses and consumers across New Zealand currently have limited access to contemporary card technologies and this partnership will expand available opportunities to advance the market overall. 

“Change is among the first to offer digital wallets and modern payment solutions in New Zealand. Our landmark partnership with Finzsoft will address a clear shortcoming in the market by expanding the availability of card solutions outside of the major bank providers,” Mr Wilkie said. 

Credit unions and traditional finance lenders are turning to alternative card providers, outside of the major banks for fast, reliable, and well-integrated exchanges. “By expanding this section of the market, businesses and consumers will have greater access to modern products and services,” Mr Wilkie remarked. 

The instant issuance of digital cards will be available for consumers at launch and Change is already investigating opportunities to add Apple Pay, Google Pay and buy now pay later (BNPL) capabilities. 

“BNPL is projected to be the fastest growing e-commerce payment platform before 2025 and by increasing consumer access to digital cards and payment solutions, we are creating equity in the market while rivalling the services offered by major banks and traditional card lenders,” Mr Wilkie concluded. 

Change will partner with Finzsoft, who will deliver core banking and mobile banking apps to the four mutuals. 

Finzsoft Chief Executive, Helen Hatchard noted, “The partnership will allow these credit unions to offer a modern digital payment experience to their members and allow them to strongly compete with major banks and fintechs. 

We are excited to be partnering with Change once again to deliver digital transactions for accounts, lending and cards.  

Change’s payments experience, product roadmap and strong New Zealand presence will create a truly modern and innovative digital experience for members,” Ms Hatchard said. 

First Credit Union General Manager, Simon Scott said, “By accessing Change’s Vertexon PaaS, Mastercard issuing and card holder API systems, we can provide modern card features that rival the major banks and fintechs.”  

Nelson Building Society CEO, Tony Cadigan said, “Change’s digital payment features, and services will enable us to develop new payment products to retain and attract new clients.”  

Westforce Credit Union General Manager, Victor Martick said, “This partnership will benefit our members by providing modern card features.” 

Police Credit Union CEO, Craig Pomare said, “Digital payments are now an essential part of the global economy, so we are excited to work with Change and Finzsoft to co-develop innovative card products for our members.”  

According to the third edition of Prime Time for Real Time 2022, published by ACI Worldwide, (NASDAQ: ACIW), in partnership with GlobalData, a leading data and analytics company, and the Centre for Economics and Business Research, Australia and New Zealand are looking to a new era of real-time payments with a renewed sense of urgency and need to modernise to stay competitive.   

Change was selected in a cohort of 9 Australian fintechs to participate in the Fintech Australian and Austrade program to help financial services and technology providers scale in the US market.

Across May and June, the cohort will attend the in-person program in New York where they will promote their offering, meet partners, clients, investors and mentors to build their US market presence. The cohort will also attend the Lendit Fintech 2022 Conference at the end of May, which includes the Demo Day hosted by WEVE Acceleration and Austrade.

Austrade’s Steve Rank, Trade and Investment Commissioner New York, explained  “Australia’s fintech sector will be showcased in New York when 9 of the best and brightest Australian Fintech startups visit in May.”

Change will be presented by Clayton Fossett (COO) and Brian Hodgdon (VP – Business Development and Customer Relations) and promote our Vertexon Payments as a Service and PaySim payments simulation and testing products.

Change will be joined by

• Assurancelab
• Camms
• ezidox
• Karta
• Mycellium
• Rich Data Co
• WeMoney
• Zai

Change is honored to have been selected along with such esteemed fintechs and looks forward to building our presence in the US.

• Exclusive six-year direct issuing partnership with Mastercard for prepaid and debit cards in Australia and New Zealand.
• New agreement strengthens Change Financial and Mastercard’s long-standing relationship in the US market.
• Change Financial provides mid-sized banks and fintechs with a faster path to market for prepaid and debit card products.

Australian based global fintech and payments as a service (PaaS) provider, Change Financial (Change), today announced an exclusive six-year direct issuing partnership agreement with Mastercard in Australia and New Zealand. Under the agreement Change will begin issuing prepaid and debit cards in both countries from Q4 FY22.

Change CEO Alastair Wilkie said, “This agreement strengthens our long-standing relationship with Mastercard in the US, and transaction processing for existing clients.

“Our partnership with Mastercard will deliver direct issuing capabilities for our Australian and New Zealand clients, giving them a faster path to market for innovative prepaid and debit card products.”

Change uses innovative and scalable technology solutions to provide tailored payment solutions, card issuing and testing to banks and fintechs. The company manages and processes more than 16 million virtual, credit, debit and prepaid cards worldwide. Change’s payments technology and management services are used by over 147 clients in 41 countries. Clients include BDO Unibank, ME Bank and eftpos Australia.

Dan Martin, Vice President, Digital Partnerships, Australasia, Mastercard said, “There’s a significant opportunity to provide Australian and New Zealand’s mid-sized banks and fintechs with the tools and services to best meet the changing expectations of a more digital world. This partnership brings the best of our respective strengths, including Mastercard’s global payment network and technology, to enable Change’s customers to create and launch prepaid and debit card programs seamlessly, safely and securely.”

This agreement follows Change’s recent launch of Vertexon, a payments platform with host multitenancy and dedicated PaaS platform for Australian and New Zealand clients. Vertexon seamlessly integrates with a businesses’ core systems enabling them to easily deliver physical and digital card solutions to their customers as well as offering other features such as Buy Now Pay Later (BNPL), transaction processing and integrated loyalty programmes.

Change is currently being onboarded on to the Mastercard Network to complete testing to onboard customers onto their PaaS platform from Q4 2022.

• Change’s direct issuing capability follows partnership with Mastercard in Australia and New Zealand.

• New capability allows clients to reduce operational burden and create new lines of revenue.

• Ability to tap into direct issuance is a key strategy for smaller operators as they go on the offensive with digital payments.

SYDNEY, 15 March 2022: Australian based global fintech and payments as a service (PaaS) provider, Change Financial (Change), today announced the launch of direct issuing services for card programs in Australia and New Zealand. This offering will enable bank and fintech clients in Australia and New Zealand to deliver digital and physical prepaid and debit cards to their customers.

Change CEO Alastair Wilkie said, “Change’s direct card issuing capability allows clients in Australia and New Zealand to offer virtual and physical cards, controlling expenses, reducing operational burden, and creating new lines of revenue.

We can help small to medium sized banks and fintechs compete in a highly competitive market without the operational expense. In fact, we are changing the dynamic by giving them the payment solutions needed to level the playing field against the bigger banks and competitors,” added Mr Wilke.

As the demand for online payments in Australia and New Zealand continues to rise, small to medium sized banks and fintechs are under pressure to innovate and keep loyal customers engaged. The ability to tap into direct issuance is a key strategy for many smaller operators as they go on the offensive.

Traditionally these financial institutions have had few options for card issuing and could not compete with the functionality and technical richness offered by major issuers.

“We have seen in the Oceania region, and specifically in New Zealand, agency services from the major banks restricting the use of digital payment options like Apple Pay to the likes of credit unions and mutual banks.  Change can replace these traditional agency service providers to deliver modern solutions that retain and attract customers to smaller banks and fintechs,” Mr Wilke explained.

Change uses innovative and scalable technology to provide tailored payment solutions, card issuing and testing to banks and fintechs. The company manages and processes more than 16 million virtual, credit, debit and prepaid cards worldwide. Change’s payments technology and management services are used by over 147 clients in 41 countries. Clients include BDO Unibank, ME Bank and eftpos Australia.

Change’s Vertexon PaaS platform seamlessly integrates with a businesses’ core systems enabling them to easily deliver physical and digital card solutions to their customers as well as offering other features such as Buy Now Pay Later (BNPL), transaction processing for all major schemes, including Mastercard, Visa, Amex, JCB and UnionPay and integrated loyalty programmes.

“Our clients outsource the operational work involved in direct card issuing to us so they can receive the scale benefits without the operational burden. Cards, whether digital or physical are a scale business. You need some way to offer and manage that and we can help,” Mr Wilkie said.

With its recently acquired Financial Services Provider (FSP) approval in New Zealand and with its Australian Financial Services License (AFSL) application underway, Change also takes on the burden of Payment Card Industry Data Security Standard (PCI-DSS) certification with the schemes, technology platform and processing, lowering the barrier for entry for clients in Australia and New Zealand.

By outsourcing issuance, banks and fintechs can focus on their core business and leverage the loyalty they’re known for, generating more customer satisfaction while creating new revenue and data streams. And, they don’t have to worry about losing customers to other financial institutions trying to cross-sell competing banking services.

Change’s direct issuing can deliver card solutions for fintechs looking to add card payments to enhance their financial product offerings.  Small to medium banks and non-bank deposit takers (NBDTs) now have a partner to deliver modern digital cards to their customers without having to partner with larger competitors.