Spenda Ltd (ASX:SPX) has teamed up with AirPlus International, a renowned corporate payment specialist, to enhance its payment offerings with the inclusion of 'virtual cards'.
“This agreement with AirPlus will enable us to further expand our product offering, enter new verticals and scale into larger payments solutions, including cross-border and international transactions," Spenda CEO and managing director Adrian Floate said.
"This represents an important milestone for the company in broadening our addressable market and enabling the long-term scalability of our solution, with an international payments provider, without the requirement of first-loss capital."
Introduction of virtual cards
The payment processing agreement is a big development for the company’s payment solutions, introducing the concept of virtual cards, which allow for the generation of credit card numbers for specific purposes or durations.
One application of the virtual card will be procurement purchases within the agricultural sector.
AirPlus has pre-approved an $18 million facility for use by AgriChain customers, unlocking new possibilities for Spenda in this sector.
Through the partnership, Spenda gains the capability to scale its services into large facilities, explore cross-border opportunities and expand its international service offerings.
Growing market opportunities
The collaboration substantially broadens Spenda's addressable market.
Both companies are actively working to identify and develop a pipeline of opportunities for the virtual card product, both domestically and internationally.
The partnership with AirPlus enables Spenda to integrate the virtual card product into its existing payment solutions, including Pay Statement by Link, Spenda Accounts Payable, and Spenda Payment Widget.
Initially, the virtual card will be employed to tap into the B2B payments potential in grain and farm input procurement.
Both parties anticipate commencing trading and generating income during the current quarter.
The introduction of the AirPlus virtual card credit line complements Spenda's existing $50 million funding facility. Importantly, this AirPlus facility does not require a first-loss capital contribution from Spenda, which will enhance scalability.
Spenda and AirPlus are jointly exploring opportunities in various agricultural verticals, including livestock, horticulture, grocery, food and beverage, and second-hand equipment sales.
The push into these sectors aligns with the company’s vision of providing a comprehensive supply chain solution tailored for trading networks and distributed marketplaces.
AirPlus commercial director APAC David Newington said: “We are very excited about the collaboration with Spenda.
"AirPlus and Spenda are focused on simplifying purchasing processes for customers through central payment. With this partnership we can together streamline merchant payments for faster settlement and integrate data for automated accurate reconciliation, setting a new standard for the industry.”
About Spenda
Spenda is a leading provider of software and electronic payment solutions, catering to a wide range of industries. The company is dedicated to delivering innovative payment solutions that streamline processes and enhance efficiency for businesses of all sizes.
About AirPlus International
AirPlus is a specialist in providing smart and straightforward payment solutions for organisations. With a focus on simplicity and efficiency, AirPlus empowers businesses to manage their payments effectively and securely.