Boku Inc (AIM:BOKU) will supply its digital wallet and payment methods to Amazon.com in a deal that also allows the retail giant buy up to 3.75% of the mobile payment solutions provider's stock.
The deal, which runs for an initial three year term with one year renewal periods, covers the processing of payments for Amazon Prime Video subscriptions through Amazon's primevideo.com site for customers located in certain countries in South East Asia and Africa.
"We are delighted to have entered into this new agreement with Amazon which demonstrates that one of the world's most well-known brands has chosen Boku to process certain digital wallet payments, reinforcing Boku's strategic move into these areas," Jon Prideaux, Boku chief executive said.
Boku's revenues will be based on a percentage of Prime Video transaction values it processes, it said in a statement. The costs will be matched to and offset against sales generated by Boku from Amazon.
Under the terms, Boku also issued warrants to Jeff Bezos’ company to subscribe to up to 11.2mln shares of its common stock, representing 3.75% of its share capital.
The warrants are exercisable at 81.2p, which was the 30-day trading volume-weighted average price of its common stock.
They will be exercisable, in whole or in part by Amazon, for 10 years from the issue date.
Boku’s shares surged 13% to 87.3p on Tuesday morning.