The Change Financial Ltd (ASX: CCA) share price is soaring today after the company struck a financial agreement with Mastercard.
The company's shares are currently swapping hands at 9.9 cents, a 16.47% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.41% today.
Change is a global fintech company providing payments as a service (PaaS) to 141 clients in 41 countries
Let's take a look at what this ASX fintech announced today.
Deal with Mastercard
The Change Financial share price is surging after the company announced it has signed an exclusive six-year agreement with Mastercard in Australia and New Zealand.
The company will receive a cash incentive payment of $1.4 million from Mastercard upon the launch of the first direct issuing program in Australia or New Zealand. This is expected in H1 FY23.
Mastercard and Change will now be able to work together to spearhead prepaid and debit card programs for banks and fintechs.
Change also expects the agreement will deliver transactional and recurring revenues and incentive discounts that will reduce the network costs.
The ASX fintech is optimistic this deal will open up further opportunities to drive growth in the Oceania region.
Commenting on the agreement fuelling the Change Financial share price today, CEO and managing director Alastair Wilkie said:
This Agreement strengthens both our long-standing relationship with Mastercard in the US, as well as our transaction processing capabilities for existing clients.
Our partnership with Mastercard will deliver direct issuing capabilities for our Australian and New Zealand clients, giving them a faster path to market for innovative prepaid and debit card products
The Oceania region generates 29% of Change's revenue and 33% of its client base.
Change Financial share price snapshot
The Change Financial share price has fallen 9% in a year and almost 5% this year to date.
In the past month, the company's shares have soared 14%, while they are up 12% in the past week alone.
For perspective, the benchmark ASX index has returned about 11% over the past year.
The company has a market capitalisation of about $39 million based on the current share price.
