Mint share price soars 49% on new deal

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.

BRAND NEW! Our Top Dividend Stock for 2016

Our resident dividend expert names his Top Dividend Share for 2016. Not only are the shares dirt cheap, the company is trading on a 5.6% fully franked dividend yield. Simply click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.