The deal with a US-based fintech company today was a major milestone for Change Financial, as it embarks on an expansion strategy in the US.

Just two weeks after signing a partnership deal with Axiom Bank, Change Financial (Change)(ASX:CCA) is already about to onboard a new client to its payments platform.

Change has just won a contract with a US-based fintech, which is set to become the first card program to be launched under Change’s partnership with Axiom Bank.

The client will transition to Change’s platform and leverage its Program Management service offering – a technology that enables clients to focus on value-added activities within their areas of expertise.

Along with processing, card and program management, Change’s payments platform also provides mobile apps, giving customers digital control of their cards.

The contract signed today will generate a minimum of US$0.7 million (A$1 million) in revenue for Change over an initial three-year term following launch, which is anticipated in Q3 FY22.

Revenue from the program will primarily be generated through interchange, transaction fees, cardholder fees, and program management services – with minimum fee commitments adding to Change’s annual recurring revenue.

Although still unknown at this stage, the company expects to earn more than the minimum US$0.7 million over the term of the contract.

Change CEO, Alastair Wilkie, said the signing was an important milestone as it executes on the strategy to grow in the US.

“We are thrilled to be adding a new client on the Change platform in the US, where we are starting to see increased traction with our product and service offerings,” Wilkie said.

“Supporting a benefits card program is confirmation of the versatility of our platform and also leverages our long-standing expertise in card program management and compliance.”

Expansion into the US
The three-year partnership signed with Axiom Bank in late September was a key step towards expanding Change’s reach in the US.

And as today’s deal showed, it’s a key relationship when onboarding fintechs in the country.

Change aims to onboard potential fintech clients with Axiom as the issuing bank, leveraging its Mastercard registered processor and payments platform, Vertexon.

Wilkie has said the US is a key focus of his FY22 strategy, as the company executes on its growth strategy.

Change’s top line revenue surged from US$300,000 in FY20 to US$8.4 million ($11.3 million) in FY21 – a year described by management as being “transformational”.

The company expects its sales pipeline to grow even further in FY22, as it focuses on global business development strategies.

CCA’s payments technology provides the critical infrastructure that connects existing licensed banks with modern API-driven brands, such as fintechs.

The platform currently manages and processes more than 16 million virtual, credit, debit and prepaid cards worldwide, serving 136 clients in 36 countries.

https://stockhead.com.au/tech/change-financial-gains-traction-in-the-us-as-it-onboards-first-fintech-client-with-axiom-bank/

The partnership agreement with US-based Axiom Bank establishes a solid foundation for future growth and upcoming programs for Change Financial in the region.

Global fintech Change Financial (ASX:CCA) has announced a partnership with Axiom, one of the fastest growing community banks in the US.

The three-year partnership is a key step towards expanding Change’s reach in the US, and will be a key relationship when onboarding fintechs in the region.

Change aims to onboard potential clients with Axiom as the issuing bank, leveraging Change’s Mastercard registered processor and payments platform, Vertexon.

CCA’s platform currently manages and processes more than 16 million virtual, credit, debit and prepaid cards worldwide, serving 136 clients in 36 countries.

“Unlocking growth in the US is a key focus of our FY22 strategy, we’re thrilled to announce a strong partnership with Axiom Bank so early in the financial year,” says CCA CEO, Alastair Wilkie.

Partnership underpins Change’s global growth strategy
Headquartered in Florida, Axiom Bank provides a wide range of financial products and services.

These services include retail banking, money market and CD accounts, as well as commercial banking, treasury management services and commercial loans for both real estate and business purposes.

CCA’s payments technology provides the critical infrastructure that connects existing licensed banks with modern API-driven brands, such as fintech platforms.

Under the partnership agreement, Change’s payments platform, Vertexon, will allow onboarded clients to access feature rich products and functionality such as physical and virtual cards, access to ATM networks and Buy Now Pay Later payment options.

The two companies are now working together to onboard potential clients in the US, with the first client expected in the December 2021 quarter.

Axiom Bank’s executive vice president of Banking-as-a-Service, Ron Strand-Sorrell, said: “We are thrilled to be partnering with Change Financial, and are excited about the opportunities that leveraging their innovative payment solutions bring.”

CCA expects that clients in the US will contribute to driving growth in its recurring revenue.

The partnership also highlights CCA’s ability to deliver on its FY22 growth strategy, by engaging with banks and fintechs to drive future growth.

“We’re committed to strengthening and growing the core business and believe the partnership with Axiom effectively highlights how Change delivers tailored and innovative payment solutions to banks and fintechs around the world,” said Wilkie.

Change is currently undergoing a rapid growth trajectory, with top line revenue surging from US$300,000 in FY20 to US$8.4 million ($11.3 million) in FY21 – in a year described by management as being “transformational”.

In FY22, Change expects its sales pipeline to grow as it focuses on global business development strategies.

One of the strategies includes the rollout of its Phase 2 Customer Ready Platform, which will allow it to offer a next-generation integrated payment processing and card management solutions platform.
https://stockhead.com.au/tech/change-financial-partners-with-us-based-axiom-bank/