Bartercard inks Australian Eftpos deal

Bartercard has linked its business-to-business barter platform to the national electronic funds transfer at point of sale (Eftpos) network in Australia.

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Bartercard inks Australian Eftpos deal

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Bartercard says Commonwealth Bank of Australia, National Australia Bank, St George and Westpac - have all agreed to the system.

The firm's 25,000 Australian member businesses will now be able to buy products by making an Eftpos transaction rather than by filling out a voucher.

Shares in Bartercard soared on the news, and more than doubled at one stage. By mid afternoon the stock was up 73.60% to 16.50 pence.

Bartercard says it processes more transactions than American Express and Diners Club combined in Australia, with a large administrative overhead required to handle printing, distribution, phone authorisations and processing of the vouchers.

Wayne Sharpe, executive chairman, Bartercard, says: "The sheer size of our Australian business membership base was very appealing to the banks, along with Bartercard's technology team developing all the software and banking links. Two banks are live now with final programming expected to be completed by the end of March."

Following a similar deal in New Zealand, approximately 70% of Bartercard transactions moved to electronic processing, at a cost of up to 50% less than a voucher transaction.

Says Sharpe: "Given that Bartercard Australia accounts for over 65% of Bartercard Plc's revenue, and its largest cash expense is head office administration, the net effect of this on our bottom line should be substantial."

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