Cirralto Ltd (ASX:CRO) has confirmed May 1, 2021, as the launch date for the new functionality of its Spenda Business Payments Service utilising the MasterCard Business Payment Aggregator (BPA) and the Visa Business Payment Solution Provider (BPSP) agreements with Fiserv.
This follows the successful completion of Phase II testing of the BPA/BPSP functionality.
Phase-II testing was carried out with multiple customer and supplier scenarios utilised to process live accounts and receivable payments of up to $100,000 per transaction.
Numerous addressable markets
Phase-I of the testing was completed on February 22.
When the BPSP and BPA enabled Business Payment stack is launched on May 1, Cirralto will initially focus on serving customers in the following addressable markets:
- Fashion - where it connects retailer to manufacturer;
- Education - where it connects parent to school and school to suppliers;
- Food & Food Service - where it connects food producers to suppliers and food retailers to food producers;
- Home Furnishings and Specialist Retail - where it connects retailers to manufacturers; and
- Automotive - where it connects vehicle owners to service providers.
Strategic merchant rate
With the successful implementation of the BPA and BPSP functionality into Spenda’s Payment Services, the company is able to roll out its product more rapidly and deliver on its vision to change the way businesses trade and pay each other.
Through these agreements, Cirralto is also able to incorporate a strategic merchant rate that will increase Cirralto’s margins on digital payments by up to 40 per cent.
Benefits
The increased functionality offered by the BPSP and BPA agreements will roll-out along two of the company’s existing business payment channels, the manufacturer to wholesaler and wholesaler to retailer relationships.
Cirralto expects to implement expanded payment services into the retail base that leverages its POS and eCommerce capabilities enabling it to capture retail wallet share from consumers.
Additionally, Cirralto will benefit from:
- An increase in Average Revenue Per User (ARPU) due to the increased margin on digital payments;
- The ability to acquire customers more efficiently due to the changes in how we authenticate the user relationship under the BPA and BPSP agreements; and
- An expected increase in the number of customers processing payments through the card networks due to increased functionality and line of business features.
The next phase of the BPA and BPSP roll-out will focus on bringing business to business (B2B) payments in line with the services currently offered in the business to consumer (B2C) trading relationship.