- Cirralto (CRO) has signed a business payments service provider (BPSP) agreement with global payment leaders Fiserv and Visa
- Under the new deal, the NASDAQ-listed Fiserv will be Cirralto's exclusive merchant acquirer under Visa’s BPSP merchant services agreement
- CRO said the agreement includes a discounted merchant rate that will increase its profit margins on credit and debit card payments by up to 40 per cent
- The company will use $500,000 in existing capital as security deposits for the BPSP requirements
- It's also begun BPSP technology implementation and expects this to be completed within the next eight weeks
- Following today's announcement, Cirralto has come out of a voluntary suspension and its securities have begun trading again
- Since then its share price has jumped a strong 28.3 per cent, to trade at 3.9 cents
Cirralto (CRO) has signed a one-year business payments service provider (BPSP) agreement with global payment leaders Fiserv and Visa.
As part of this new deal, the NASDAQ-listed Fiserv will serve as the exclusive merchant acquirer for Cirralto under Visa's BPSP merchant services agreement.
This means CRO has the authority to process consumer credit card and debit card purchases on behalf of a business on all business-to-business (B2B) customer payments.
Significantly, the agreement includes a discounted merchant rate for credit and debit card payments that will essentially increase Cirralto's profit margins by up to 40 per cent.
"The BPSP gives us the flexibility to supply payments services to customers at a different scale and price point than would otherwise be possible via traditional merchant services," Cirralto Managing Director Adrian Floate said.
"Without the BPSP, larger customer networks and market segments with thousands of buyers and sellers would be so time and resource-intensive that we simply couldn’t pursue them," he added.
As part of the agreement, Cirralto will need to utilise $500,000 in capital as security deposits to secure the facility and to meet its customer settlement obligations.
In return though, the fintech stock anticipates its payment process and onboarding times to halve.
"The agreements gives us the ability to compete with other global payment players and financial institutions targeting B2B customers and networks," Cirralto's MD explained.
Implementation of the BPSP technology is already underway and is expected to be fully integrated in the next eight weeks.
While following today's announcement, Cirralto has come out of a voluntary suspension and its securities have begun trading again.
Since then its share price has jumped a strong 28.3 per cent, to trade at 3.9 cents each at 2:09 pm AEDT.