Mint share price soars 49% on new deal

Mint Payments Ltd (ASX:MNW) signs new deal that could accelerate transaction volumes and revenues

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The Mint Payments Ltd (ASX: MNW) share price has rocketed up 49% to 10 cents after the company announced a new deal with an NYSE-listed international payment technology provider.

Mint says the deal encompasses three agreements:

  1. Distributing Mint's mPOS solution to its network of resellers and merchants – Mint to receive a recurring monthly fee per user from the merchant and a share of the transaction fees;
  2. Becoming an acquiring partner for Mint and its distribution partners' card present and card not present solutions; and
  3. Becoming a transaction-switching provider for Mint, allowing Mint to provide its solutions to any financial institution or enterprise merchant on the partners' network.

The company says it will allow the partners' merchants to accept Visa, Mastercard, Amex and EFTPOS payments on iOS or Android devices (such as smartphones). Mint will supply those merchants with the M010 Bluetooth device, which is contactless ready, allowing merchants to accept PayWave, PayPass or token-based wallet payments such as Apple Pay.

The new deal should see Mint's revenues and cash receipts soar. In the September quarter, Mint reported a 35% increase in cash receipts to $2.3 million compared to the previous year. Transaction volumes are growing fast too – up 417% on the Mint payments platform.

Foolish takeaway

While still a speculative bet that Mint will become profitable at some stage down the track, this newly announced deal should see that occur sooner.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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