Stargroup diversifies EFTPOS product
Stargroup Limited (ASX:STL) has differentiated its market offering, signing on to become a re-seller of cash advances to small businesses.
It told the market this morning that it would now re-sell First Class Capital Funds Management’s Retail Merchant Advance (RMA) product to STL’s EFTPOS customers in Australia.
The product is a cash advance extended to small businesses against future EFTPOS sales from that business, providing businesses a potential working capital facility.
Advances are typically over one to six month terms and the maximum amount is based on the historical monthly average transactions of that business, STL said.
STL chief executive Todd Zani said the ability to sell the RMA product would give it a point of difference in the EPTPOS marketplace.
“It is another offering for our StarPOS team to differentiate our product in the marketplace and further demonstrates our commitment to provide the ‘star treatment’ to our customers,” Zani said.
There was no guidance given as to how many STL EFTPOS customers may sign up for the service, or what sort of sales commission STL would make on the deal.
Earlier this month STL said it had reached a record ATM transcations per month figure, with transactions reaching 654 per month per machine.
In terms of raw number of transactions though, it had an 11.49% bump as it added more machines to its network.
On the back of the recent strength, it has also bumped up its annual transaction forecast up from 1.8 million transactions to 2 million transactions.
Back in September STL merged with iCash Payment Systems to create a combined ATM and EFTPOS company.
It has a network of ATMs around Australia, taking a clip on each transaction, but it also has longer term plans to get into the EFTPOS game, adding another source of revenue for the combined company.
STL is also the only listed ATM company which has a direct stake in the manufacturer of its ATM machines, namely NeoICP in South Korea.
It has estimated the stake helps reduce the costs of manufacturing machines by about 30%, saving $1.1 million in capital expenditure each year.
It has also sought to diversify into other areas such as ‘cash recycler’ ATMs and PayWave Technology.