- Change Financial (CCA) has launched its first platform customer, UpChange, on its payments and card issuing platform
- The platform allows banks and businesses to develop innovative payment solutions under their own brand
- Customers will receive their UpChange Mastercard-branded cards in the mail in the next two weeks
- Change will earn its first revenues from the platform this quarter
- As part of a previously announced capital raise, Change’s sponsor bank, Central Bank of Kansas City, has invested US$250,000
- Additionally, entities associated with Directors Harley Dalton, Ben Harrison, and CEO Alastair Wilkie will apply for A$350,000 in shortfall shares
- Company shares are down 3.17 per cent and are trading for 6.1 cents each
Change Financial’s (CCA) sponsor bank, Central Bank of Kansas City, has approved the launch of the first platform customer, UpChange, on Change’s payments and card issuing platform.
As previously announced, beta testers have been swiping UpChange cards and transacting prior to a formal launch on Change’s payments and card issuing platform.
With the launch in production, UpChange customers will start receiving their UpChange Mastercard-branded cards in the mail in the next two weeks.
“The Change and CBKC teams have been focused for the last 6 months on launching the first customer, UpChange, on our platform,” CEO Alastair Wilkie said.
The platform was completed in September 2019 and was designed as the new standard for innovative payments and card issuing. The platform allows banks and businesses to develop, customise and launch innovative payment solutions under their own brand.
It’s actually the first payment and card issuing platform completed in the last five years and second in the last 20 years, following U.S.-based fintech company, Marqeta Inc.
“Having UpChange live in production validates the Platform and proves our commercialisation model. It also strengthens our partnership with CBKC and we look forward to contracting and onboarding new customers with CBKC this year and into the future,” Alastair added.
In addition to UpChange, CBKC has identified a number of new and existing customers to join Change’s Platform and will work with Change over the coming months to start the onboarding process.
“We very much look forward to working closely with the Change team over the next six months to contract a pipeline of new customers to Change’s Platform,” CBKC President of Central Payments and Director Trent Sorbe said.
Change Financial will start earning first revenues from the platform this quarter, delivered by UpChange customers using their cards and the mobile app.
Additionally, Change has secured an initial investment from CBKC of US$250,000 as part of the capital raise announced on April 1.
The company has also secured applications and commitments for a minimum of A$3.75 million (approximately US$2.4 million) under the entitlement offer.
The closing date of the offer has been extended to May 7.
Under the capital raise, entities associated with Directors Harley Dalton and Ben Harrison will subscribe for a total of A$300,000 worth of shortfall shares, in addition to taking up their full entitlements. This is however, subject to shareholder approval.
Finally, Change’s CEO, Alastair Wilkie will also subscribe for shortfall shares amounting to A$50,000.
Additionally, Change has secured US$230,000 from the US CARES program. That money will go towards covering some of the company’s payroll expenses during this difficult time.
That debt may even be forgiven if Change meets certain criteria, and the company will have further details on this by the time the September 2020 quarterly announcement is released.
Company shares are down 3.17 per cent and are trading for 6.1 cents each at 3:25 pm AEST.