|BPS Technology Limited (ASX:BPS) is pleased to announce that it has signed an Agreement with Australian Capital Express Limited for the sale of an exclusive licence of Bartercard system in the People’s Republic of China.
The licence relates to the roll out of Bartercard across twenty one identified provinces in China for a total licence fee of US$2.625 million (AU$3.25 million). BPS Technology will also receive service fees of 6% of revenues generated from Chinese based members.
Commenting on the announcement, BPS Technology’s CEO, Mr Trevor Dietz, said, “This agreement marks an important milestone for the Bartercard business given the vast opportunities for our platform in China. The size of the Chinese market, coupled with the ability for Bartercard to generate significant transactional revenues over time, makes this a very attractive growth avenue for BPS Technologies. This transaction is a further example of the company’s strategy of international expansion into one of the largest markets in the world. We look forward to the roll out of the Bartercard platform in China and the continuing growth of merchants and cardholders in that country”.
Australian Capital Express Limited is jointly controlled by Messrs. Humphrey Xu, Zhou Jun, Tong Fei and Liu Su. Spokesperson for the company, Mr Humphrey Xu, said, “It has been a personal goal of mine for more than ten years to bring Bartercard to China. We are excited by the opportunities for this platform in China and our association with BPS, an Australian ASX listed company.”
This announcement follows the expansion of BPS into South Africa with the granting of a licence to set up its first Bartercard operation in the Johannesburg area.
Bartercard’s USA and UK operations also underwent further expansion in December with the opening of two additional offices in each of the regions.
Mr Dietz added, “BPS has the technology and personnel in place to capitalise on the growing trends evident in the market place – that is, the increasing importance of loyalty programs to generate new business for merchants, the strong take-up of cloud based systems and mobile devices as well as the globalisation of the consumer market. We remain very confident about the opportunities for growth within the sector and we will continue to build on the momentum achieved so far.”
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About BPS Technology Limited
BPS Technology Limited is a leading provider of technology platforms and management systems in the Currency Alternative space for Small to Medium Enterprises (SMEs). Its technology platforms and systems help to drive customers to its SME merchants. This enables BPS to generate revenues from its SME merchant base.
Bartercard is recognised as the largest Barter Trade Exchange in the world; Tess offers a cloud based software service to other Barter Trade Exchange operators; and Bucqi is a merchant centric mobile loyalty, rewards and payments application. As a result of the agreements referred to above, the Group will operate in ten countries, have more than seventy five offices and employ approximately 400 staff to support its 54,000 card holder base who currently generate more than A$600 million in transaction value annually.
The Company listed on the ASX on 9 September 2014. Its Board of Directors and Senior Management have extensive experience of the trade exchange, loyalty, transaction and payment industries, financial management and corporate governance.