Mi-Pay secures contract extension with existing client
AIM-listed Mi-Pay has agreed a contract extension with a long-term existing client for an incremental three-year period, which is expected to secure existing revenues and drive material growth in payment transaction value processed from the €25m processed in 2016.
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The value of payment transactions over the life of the contract is expected to rise to more than €100m per year.
Mi-Pay will be working with the client over the next 12 months to secure the growth in transactions through the delivery of its fully outsourced, omni-channel digital payment solution and assisting the client with its full infrastructure rebuild. The company will be integrating and providing new services to the client's customers, improving the end user digital payment experience within a secure, risk free fully managed environment and aiming to migrate further consumers to its solution during 2018.
There will be an initial reduction in revenues and margin as both parties focus on the delivery of new solutions and new commercial terms take effect, but Mi-Pay expects to see strong long-term revenue growth in 2018 and beyond as higher volumes are realised.
Chairman Seamus Keating said: "We are delighted to have secured an additional contract with one of our valued existing clients for another three years, in which we expect to aid them in fully transforming their infrastructure and significantly grow their digital consumer base as their chosen digital payments partner. We look forward to growing our relationship with our client and providing additional functionality to their end users."
At 1040 BST, the shares were up 8.6% to 18.40p.