A Technology Services Agreement and Binding Funding Agreement between Spenda Ltd (ASX:SPX) and APG Pay Pty Ltd will see the companies develop and commercialise a next-generation, closed-loop corporate credit platform. APG has committed A$50 million to kick off the partnership, with capital allocations set to scale in line with business growth. Spenda expects to earn A$1.7 million in annual recurring gross profit, with upside from transaction and service fees.
The deal signals Spenda’s shift from being a traditional lender to powering embedded credit solutions, giving customers access to finance without the company taking on any credit risk.
The platform will launch on July 1, 2025, in the travel sector across Australia, New Zealand, Hong Kong and Singapore, transitioning AirPlus customers to APG Pay.
It will also serve Spenda’s existing B2B clients, including Carpet Court, with further expansion into sectors like automotive, real estate and trade services.
“This agreement completes a transition for Spenda from an on-balance sheet lender to an embedded credit enabler that utilises software to manage lending outcomes and payment flows for customers, without credit risk exposure,” Spenda managing director Adrian Floate said.
Strategic agreement with APG Pay
The strategic alliance between Spenda and APG Pay, a subsidiary of Singapore-based APG, will deliver a corporate credit platform tailored to B2B customers. The partnership combines Spenda’s workflow and payments technology with APG’s financial infrastructure, enabling integrated embedded finance solutions.
The agreement includes mutual exclusivity for 10 years, with an option to extend for another decade.
“We expect to grow new portfolios and collaborate with APG to scale existing customer networks. The provision of APG credit products and the profit share structure reflect our highly aligned partnership that is based on strong confidence in Spenda’s technology and execution capabilities. We look forward to building a long-term relationship with APG as we expand our footprint across Australia and the Asia-Pacific region,” Floate said.
Platform roll-out and sector focus
The platform’s first-phase deployment will begin with corporate travel clients in the Asia-Pacific region, replacing the outgoing AirPlus Business Credit product. The second phase will target a broader rollout to other industries where scalable, integrated credit solutions are in demand.
Spenda’s existing clients in the supply chain sector, including the Carpet Court channel, will be early adopters of the new system.
Revenue model and financial outlook
Based on contracted FY24 volumes provided by APG, Spenda anticipates monthly recurring gross profit of approximately A$140,000, equating to A$1.7 million annually. Additional revenues will be earned from transaction-based fees and ongoing platform service charges.
The APG Pay platform will replace Spenda’s existing credit solutions, now embedded into its software stack to serve customers more efficiently.