Two of the world’s leading payment processing companies have joined forces to launch a new Visa issuing business in the Asia-Pacific region with Australian fintech company Novatti Group (ASX: NOV) partnering with Decta, a leading payments processor in Europe.
The partnership leverages two of the company’s core strengths with Novatti holding a Visa Principal Issuer Licence from VISA Inc, and Decta’s leading anti-fraud and pre-paid card management services.
Having been awarded a Principal Issuer Licence by Visa in September 2019, Novatti has been able to issue and distribute both physical and digital Visa cards.
These can be used in stores that accept Visa, or be used to purchase goods online without the need to link the payments to a personal bank account whilst greatly assisting populations where cash had been the primary payment method.
“Novatti has been methodically building this new Visa issuing business as part of its strategic plan to become a banking services provider,” said Novatti Managing Director, Peter Cook.
“Partnering with Decta, a trusted, innovative technology driven processor, enables Novatti to launch this exciting new business, and provide flexible and secure new products to consumers, particularly when there is an increased need during the COVID-19 crisis.”
During the coronavirus pandemic, the world has seen a greater reliance towards online transactions as populations have undergone mass lockdowns and working from home has become the norm. Where cash has not been able to be exchanged through traditional marketplaces, there has been a rise in online purchases for delivery, a growing trend in the APAC region to be targeted by Novatti and Decta through this new partnership.
“Decta has always been an international company, but Novatti Group has broadened our horizons. And here I mean not only geographically,” said Decta Vice President and Head of Product Development, Santa Kiršbauma.
“Having such a strong name among the clients confirms that our development direction is right, and we are capable of not only competing, but beating the competition”.
The new Asia-Pacific business will hit the ground running with Novatti having already secured its first customer, United Currency Exchange, which plans to issue around 30,000 Visa cards. In doing so, Novatti receives a set-up fee as well as ongoing usage fees depending on uptake and their rate of usage.
In line with Novatti’s growth strategy to identify high growth opportunities, this new partnership continues a strong run of corporate activity in the payments sector having earlier in the month acquired Emersion, a business process integration and payment platform.
*Owners of this website are shareholders in a company mentioned in this article and have been engaged by them to assist in investor communications
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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