New Zealand-based payments company Smartpay plans to go direct in Australia with a new business called ‘Smartpay Taxis’ once its relationship with an Australian taxi payments provider expires at the end of the year. That relationship currently generates 8% of its revenue.
Smartpay told shareholders at its recent annual general meeting (AGM) that the new business would take time to develop but would ultimately deliver higher margins.
Through Smartpay Taxis, the company will participate directly in the taxi payments industry rather than through supplying terminals and services wholesale to a single customer.
Smartpay says that it has developed a market leading taxi payment technology, which integrates a mobile booking app with mobile wallet payment capabilities and a physical in-car payments terminal, taxi meter and dispatch network.
The company sees opportunities created by structural changes in the Australian taxi market, particularly booking apps that are disrupting the industry through disintermediation and regulatory changes to cut surcharges on card payments.
Smartpay claims that traditional payment providers, such as banks, face challenges in developing the next level of innovation.
The company sees growth opportunities through increasing engagement with banks, distribution partners and merchants seeking its new products and technology capabilities. Smartpay already provides mobile point of sale (PoS) systems to New Zealand bank ASB, a subsidiary of Australia’s Commonwealth Bank.
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