Cirralto Limited (ASX:CRO) has entered into a business payments aggregator (BPA) agreement with Fiserv Inc (NASDAQ:FISV) (FRA:FIV) and MasterCard Inc (NYSE:MA) (FRA:M4I) to extend its business payments services offering.
This agreement builds on the business payments solution provider agreement (BPSP) the company recently entered into with Fiserv and Visa International Ltd (NYSE:V).
Under the deal, Fiserv will serve as the exclusive merchant acquirer for Cirralto.
The BPA agreement improves Cirralto’s payments margin by 40% and enables Cirralto to process card payments as the merchant of record.
Completes business payments merchant services
Cirralto managing director Adrian Floate said: “We are really enjoying our developing relationship with MasterCard and the opportunities that this brings for all parties involved.
”The BPA completes our business payments merchant services offering and enables us to process MasterCard cards as the merchant of record under the same merchant ID as the BPSP.
“The whole team is very excited at what we have achieved this year.
“Our focus as we move into 2021, will be to maximise and leverage the various opportunities that our new agreements deliver and use this as a cornerstone of our platform upgrade due to roll out early in 2021.”
Improved transactional profit margins
The BPA agreement enables Cirralto to commercialise the Spenda product with improved transactional profit margins and streamlined onboarding processes.
As well as complementing the BPSP agreement, it also enables an increased margin on all digital payments where Cirralto is processing transactions between two businesses, being a retailer/or retail service provider and its suppliers.
BPA technical implementation is already underway and is expected to be completed within the eight weeks.
The implementation will improve the customers onboarding journey, AML/KYC delivery and when completed will improve the company’s transactional margins from the first quarter of 2021 onwards.
Cirralto will continue to deliver services under its existing arrangements while these changes are delivered.
The agreement commences on December 14 for a term of 12 months and will automatically renew unless terminated.
For more information about Cirralto visit https://www.cirralto.com.au/ and its Spenda platform visit https://spenda.co/