MEDIA RELEASE
SmartPay Ltd Expands Business Operations With 35% Stake in New Transaction Company, Card Processing Services Ltd
Auckland Monday September 25 2006: Prepaid solutions provider SmartPay Ltd (NZX:SPY) is expanding its business
operations by taking a 35% investment in Card Processing Services Ltd (CPSL).
CPSL was established by a group of private investors to manage back office transaction processing, data management and
payment systems – businesses closely aligned to SmartPay’s existing operations.
Electronic transaction processing is a growth industry, with the banking industry’s two networks currently providing the
majority of these services.
SmartPay chief executive, Linc Burgess, says there are excellent growth prospects in other areas within payment
infrastructures, both in the private and public sectors, including potentially high volume numbers through retail
transaction systems and the internet.
“Payment systems should be presented to offer the consumer various loyalty benefits as well as deliver new efficiencies,
costs and time savings,” he says.
“New Zealand is well known for its acceptance of new technologies. Payment models are adaptable in terms of who charges
who and how they are billed.”
Last week SmartPay announced the purchase of the software and source code used by the company from its Malaysian based
owner, as the New Zealand company expands prepaid payment solutions to drive gift card and voucher based systems for POS
and the internet.
Burgess explained that by SmartPay owning the technology from the terminal to the back office, together with the
company’s operational expertise, opened up significant opportunities to partner with like minded businesses.
“The investment in CPSL is part of that strategy in developing new business opportunities for SmartPay and sourcing
greater earnings potential. We are able to offer the total solution, including electronic transaction processing
software systems.”
SmartPay’s operations include the network management of a merchant base of approximately 2500 retailers throughout the
country. The business is continually developing its POS terminal software to process a range of prepaid and gift card
solutions.
Mr Burgess said SmartPay would nominate two people to the board of CPSL.
ABOUT SMARTPAY LTD
SmartPay Ltd (NZX:SPY) is a leader in the development and supply of innovative electronic prepaid solutions including
mobile phones, international calling cards, internet and POS based services, gift cards and a range of other products
As an example of the business in which they operate, the value of the pre-pay mobile and international calling card
market in New Zealand is estimated at $500 million and $100 million annually and growing fast.
Established in 2004, SmartPay has signed contract agreements with telecommunications networks and product suppliers
including Telecom New Zealand Ltd and Vodafone New Zealand Ltd. The company is also researching and developing potential
software business interests in New Zealand and internationally, including markets in Australia and Asia Pacific.
In New Zealand, SmartPay manages a network of merchants who supply products to a wide range of retailers, including a
number of high profile, national retail chains and route/convenience store owners and operators.
ENDS