Limepay, the recently acquired company of Spenda Ltd (ASX:SPX), has executed a master services agreement with Lessn to acquire and process its entire payment volume, utilising Limepay’s transaction processing gateway.
The agreement immediately lifts Limepay’s payment volumes by around 40% to about $167 million per annum, and further underpins Spenda’s strategic rationale in acquiring the Limepay business.
Under the two-year exclusivity agreement, Lessn will implement Limepay’s white-labelled payment widget product, to enable payment services on Lessn’s platform.
Lessn is an accounts payables, automation and reconciliation solution that allows SMEs, bookkeepers and finance teams to eliminate ABA files and use their Amex, Visa and Mastercard or bank-2-bank, to claim rewards on their business expenses.
The catalyst for Lessn to move to Limepay was the signing of several new contracts that have led the business to forecast strong growth. With Spenda’s acquisition of Limepay, Lessn’s growth is expected to deliver far stronger annual recurring revenue to Spenda.
Lessn’s payment volumes are expected to switch to Limepay on or around October 15, providing adequate lead time for the parties to integrate their respective technologies and migrate existing payment services.
Spenda managing director Adrian Floate said, “This is an exciting day for everyone involved. The Limepay technology is expanding Spenda’s addressable market and the Lessn agreement brings on a new partner who is growing rapidly.
"I have been privy to their growth plans and I am looking forward to supporting the program to accelerate our joint growth.”
Further growth anticipated
Lessn founder David Grossman said, “Lessn searched the entire market for the right payment's processor and we have been lucky to find a fabulous partner in Limepay/Spenda, who meet all our business objectives and have made the entire negotiation and due diligence process a pleasure.
“With the commencement of a major customer in October, we expect our payments volume to increase ~ 550% from our current volume and it was business critical for us to select a partner that could support our rapid growth with minimal disruption to our business operations.
"The alignment commercially and culturally is strong, and few partnerships tick this many mutual goals.”