EML SEALS DEAL ON ONE OF ITS 'MOST IMPORTANT AGREEMENTS' TO DATE

EML SEALS DEAL ON ONE OF ITS 'MOST IMPORTANT AGREEMENTS' TO DATE

EML Payments (ASX: EML) has finalised a major multi-year agreement to provide new salary packaging prepaid cards to Melbourne's McMillan Shakespeare Limited (ASX: MMS) and its clients.

EML managing director Tom Cregan says the deal is a landmark, with his company set to replace McMillan Shakespeare's existing prepaid cards by July this year.

"This agreement is one of the most important agreements we have signed," says Cregan.

"It opens up a significant new long term vertical for our Australian business and follows extensive due diligence by McMillan Shakespeare Limited, the market leader in the provision of salary packaging services in Australia."

According to Cregan, EML seized the McMillan Shakespeare opportunity amid a period of market transformation which was chiefly influenced by the Reserve Bank.

"This is an example of where regulatory change can create opportunities for EML," he says.

"Following changes to interchange rates by the Reserve Bank of Australia, two banks which had formerly provided salary packaging cards in Australia elected not to continue providing these cards."

While the commercial details of the transaction remain confidential, Cregan says the partnership will drive significant revenue growth in the year ahead.

"We expect from July 2017 our number of re-loadable accounts and debit loads on re-loadable products will increase by approximately 40-50 per cent versus our FY16 full year result," says Cregan.

The new card program is expected to be implemented from mid-February onwards.

EML ended yesterday's ASX trading up 4.37 per cent at $1.91 per share.

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 
The MBA that helped Epic Environmental’s startup employee become GM and partner
Partner Content
Environmental engineer Romin Nejad began his career at Epic Environmental at a challeng...
Queensland University of Technology
Advertisement

Related Stories

RACQ Insurance fined $10m for failing customers on discount promises

RACQ Insurance fined $10m for failing customers on discount promises

The insurance arm of the member-owned Royal Automobile Club of...

Lovers, not fighters: Mr Yum and me&u consummate hospitality merger

Lovers, not fighters: Mr Yum and me&u consummate hospitality merger

Two leading Australian companies that have upended the status quo i...

Sunshine Coast icon Beefy's Pies acquired by RFG for $10 million

Sunshine Coast icon Beefy's Pies acquired by RFG for $10 million

The owners of award-winning Sunshine Coast family pie shop chain Be...

New research shows how Indigenous-owned businesses are creating better outcomes for their employees

New research shows how Indigenous-owned businesses are creating better outcomes for their employees

We are seeing more Indigenous businesses in Australia. This is impo...