Cloud-based workplace solutions provider Wrkr Ltd (ASX: WRK) has scored a significant deal to improve employer services for the Australian financial company Link Group. This includes helping with superannuation payments (clearing house) and employers’ process to contribute to superannuation (SuperStream Gateway), among other workplace compliance solutions. This contract builds upon a previous Master Services agreement made by Wrkr in November 2022.
The agreement has a three-year term, with options for Link Group to renew for another year. Its initial estimated value is $3 million, covering licences, integration to Link Group’s administration platform, and fund onboarding support and services. Fee payments are linked to agreed delivery/activity milestones and acceptance.
In addition to the estimated contract value, Wrkr will earn usage fees for contributions management and messaging. These usage fees will be charged on a transaction basis as employers use the service.
Trent Lund, CEO of Wrkr, said, “We are excited to embark on this journey with Link Group and provide them with a cutting-edge platform that will empower their clients to navigate the changing landscape of superannuation seamlessly. The Wrkr Platform is a testament to our commitment to innovation and excellence, and we look forward to helping Link Group and their stakeholders thrive in this dynamic environment.”
The introduction of the Wrkr Platform represents a significant milestone in the superannuation administration industry. As of June 2023, Australia’s total superannuation assets grew to over $3.5 trillion. Employers contributed $34.7 billion in the last quarter and $122.5 billion for the year ending in June 2023. This represents a 12.9% increase compared to the previous year, ending in June 2022. It marks a significant market opportunity for both Link and Wrkr.
Administered by Link Group, the Wrkr platform enables Australian employers to navigate the complexities of the Your Future, Your Super reforms related explicitly to member stapling and choice.
One of the platform’s features is its cloud infrastructure, ensuring scalability and security. This technological framework positions the Wrkr Platform to support Link Group and its super fund clients in adhering to the latest regulatory changes. Additionally, the Wrkr Platform includes pre-integration with various payroll providers, support for multiple payment options, and the incorporation of branded mobile experiences for employers to facilitate onboarding new employees and members. Furthermore, the platform enables transparent remediation, real-time validation, and efficient processing of high-volume operations, aligning with the proposed payday super reforms.
Link Group will be able to offer the Wrkr Platform to both current and new superannuation fund clients. This package includes the full range of Wrkr products: Wrkr PAY for employee payments and payroll reporting, Wrkr READY for employee onboarding and compliance, and Wrkr BENEFITS for employee benefits processing. Whether employers can access these services will depend on individual contracts between employers and Wrkr, as determined by the superannuation fund.
Making the most of the booming superannuation funds industry, the Company adds to its FY23 momentum. In FY23, Wrkr’s revenue surged by 43% on FY22 to $6.6 million, while cash reserves increased from $1.28 million to $4.1 million. The Wrkr Platform, known for its payment processing patents in Australia and the USA, is set to enhance compliance for Link Group’s clients.
Alinda is a Business Reporter for The Sentiment
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