As we rapidly approach the end of July, one of the stand out performers on the All Ordinaries (Index: ^AORD) (ASX: XAO) so far this month has been fintech company Touchcorp Ltd (ASX: TCH).
Month-to-date Touchcorp’s shares have risen 20%. This was largely the result of a combination of broker upgrades and a couple of positive announcements. One of these announcements came this morning, sending its share price higher by 7% at one stage.
The announcement revealed that Touchcorp has teamed up with Switzerland’s Cornèr Bank to successfully launch a secure online recharge platform for two key Cornèrcard payment products.
Cornèrcard manages payment cards predominantly in Switzerland, but also throughout the broader European market. The online recharge platform that Touchcorp has developed for Cornèrcard facilitates payments for the newly-issued Instant Visa prepaid card for Apple Pay, as well as the Swatch Bellamy NFC-enabled watches with prepaid function.
Currently Cornèrcard has over CHF$100 million worth of transactions being made each year, but this is expected to grow significantly due to additional card types and products, and added geographies. Touchcorp’s management believes it will become a significant revenue stream for the company in FY 2017 and beyond.
In the future management has advised that the co-operation between Cornèr Bank and Touchcorp is expected to extend to providing an omnichannel solution for reloading of all Cornèr Bank issued VISA and MasterCard payment cards, as well as expanding into other geographies in which Cornèr Bank is currently operating.
Overall I feel this is yet another positive development for the company and am not at all surprised to see its share price rocket higher as a result. The company has been busy making deals across the world this year and certainly looks to have a bright future.
Australia has an exciting collection of fintech companies such as Afterpay Holdings Ltd (ASX: AFY), Emerchants Ltd (ASX: EML), and Mobile Embrace Ltd (ASX: MBE), but I would personally put Touchcorp at the top of that list.
Not only does the company have extremely strong growth prospects, it also has a robust balance sheet and profitable operations. All in all I feel it would make a great long-term investment today.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of TOUCHCORP FPO. 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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