Perth based ATM machine operator and EFTPOS supplier Stargroup, has inked a five year deal with a listed Swedish supplier of EFTPOS terminals to exclusively distribute their “next generation” EFTPOS terminals in Australia and New Zealand.
The deal with West International AB, a public company listed on the Swedish NASDAQ OMX First North Exchange, provides a number of market advantages for Stargroup in the EFTPOS space, none the least of which is a significantly better cost structure for acquiring each terminal.
Stargroup will also have access to the terminal software “source code” which provides the company with the opportunity to custom tailor software for each terminal to suit the client.
For example, Stargroup will now be able to code their terminals to accept a staff card at a major public hospital or large corporation, which means that products purchased at the staff canteen could be charged back to a staff member’s house account with Stargroup clipping the ticket each time a purchase is made.
Alternatively, Stargroup terminals could now be coded to accept member organization or buying group cards with the amount purchased charged back to that member’s buying group account with a small percentage paid to Stargroup along the way.
Customer loyalty cards could also now be accepted by Stargroup with the provision of some minor software changes to their EFTPOS terminals.
The company said today that it had committed, through its subsidiary StarApps Pty Ltd, to acquire 2,000 EFTPOS terminals per year from West International and to develop unique EFTPOS software for the Aussie and New Zealand markets.
"We are very excited about partnering with West International for the next generation of payment solutions in Australia and New Zealand," Stargroup CEO and Executive Chairman Todd Zani told the ASX.
“Our ATM division is profitable and well established and I look forward to cementing our position in the EFTPOS and card payment industry over the course of the next 12 months.
“With circa 900,000 EFTPOS terminals installed in Australia and the industry growing at around 60,000 terminals a year, this is a huge opportunity.”
“Owning the source code will allow us to fast track the finalisation and customisation of our EFTPOS solutions for our two technology partners that we have already contracted with and that have over 16,500 member businesses and greater than 45,000 businesses respectively that they assist on a daily basis.” Said Mr Zani.
