Cirralto Limited (ASX: CRO) has successfully upgraded its payment services with several new features and capabilities that enable full utilisation of the payment aggregator services.
Managing Director, Adrian Floate, said this upgrade follows several months of extensive development work since signing the Visa Business Payment Solution Provider (BPSP) and MasterCard Business Payment Aggregator (BPA) agreements with Fiserv, Inc.
He said the SpendaCollect, SpendaPay and the Spenda app have all been upgraded and utilising the BPSP and BPA functionality, will enable the Company to aggressively target the payments market across multiple industry sectors.
Mr Floate said the new functionality within the Spenda payment stack is a significant and fundamental milestone for the company. At this key inflection point, not only does it change the size of the customers that the company can pursue, from small and medium businesses to distribution chains and national providers, but it also increases the speed and scale that customers can be onboarded. This is a core foundational requirement in the company’s life cycle, enabling the Company to strive towards sustainable revenue growth.
Spenda can now be deployed as a single service to replace the four most common payment services offered by businesses, being:
- Electronic Funds Transfer (EFT);
- BPAY or bill presentment;
- Credit card via the seller’s website; and
- Finance or pay by month.
Mr Floate said that by securely processing payments at a lower cost than traditional merchants, the Spenda service is a very compelling payments option for businesses.
He said businesses are often deterred from changing systems or software due to many factors, including disruption to their business, having to retrain staff and cost. However, the integration capabilities of Spenda enable a light touch implementation of the product suite, as it works with and complements the businesses existing systems, rather than replacing them.
Furthermore, and a key point of difference from other payment providers, is the ledger-to-ledger integration capabilities. As the technology fully integrates with both the buyers and sellers accounting systems at the time of processing a payment, the transaction is automatically posted in the respective Accounts Receivable and Accounts Payable ledgers.
Mr Floate said this unique and powerful integration point reduces administration effort (by not having to enter the transaction manually), reduces the risk of errors (as both the buyer and seller are working off the same dataset) and reconciliation effort for both parties. In addition, the new Spenda payment suite offers users access to working capital at the point-of-activity to address common cash flow symptoms that cause late payment in commercial relationships. In essence, this allows the buyer to opt for the ‘Buy- Now, Pay-Later’ option, at the point of purchase, conditional upon them meeting the standard credit rating checks.
The BPSP and BPA agreements change how the company authenticates the user relationship, giving us the ability to acquire and onboard customers more efficiently. Through these agreements, the Company can also incorporate a strategic merchant rate that increases Cirralto’s margins on digital payments by up to 40 per cent, which will increase the Average Revenue Per User (ARPU).
With the implementation of the BPSP and BPA functionality, the software now serves as a one-stop, digital payment solution designed to replace disparate payment methods, integrate transactions end- to-end, automate reconciliation and ultimately save businesses valuable time and money.
The last 12 months has been a transformational period for the company, moving from pure development to launching and commercialising new products,” Mr Floate said.
“We are now at the beginning of what we anticipate to be an exciting phase of sustainable revenue growth. All this has been achieved during a challenging period, not only for the Company but for the global economy, with the impact of the COVID-19 pandemic. With this in mind, I personally want to commend the entire team for what they have achieved to date.
“We have focused our development teams on crafting software that drives improvements for our customers and our customers’ customer’s. We have entered into new strategic relationships that expand our service capability and, in the past few months, we have developed a payment solution that bundles the most common ways businesses pay each other into a single solution. We have done all this while maintaining double-digit quarter on quarter growth.
“As we move into the next phase of business commercialisation, we do so with a clear view on continuing innovation, addressing customer needs and a belief in our vision to positively change the way businesses do business.”