eServGlobal Limited HomeSend reaches commercial & execution milestones (9998I)
March 27 2018 - 1:01AM
UK Regulatory
TIDMESG
RNS Number : 9998I
eServGlobal Limited
27 March 2018
eServGlobal Limited (eServGlobal or the "Company")
27 March 2018
HomeSend reaches major commercial and execution milestones
eServGlobal (LSE: ESG.L & ASX: ESV.AX) is pleased to
announce that major commercial and execution milestones have been
reached by HomeSend, working in conjunction with majority
shareholder Mastercard.
Mastercard is not only an investor in the joint venture but is
also a key commercial partner for HomeSend. Mastercard offers a
service called Mastercard Send for cross-border payments which
utilises the reach and capabilities of HomeSend to offer
international payment capabilities.
Integration between HomeSend's international payments capability
and Mastercard Send has been ongoing for some time. Live
transactions have now been successfully passed across these
platforms enabling an increased set of use cases for individuals
and businesses to remit, pay or disburse funds cross-border with
the same convenience and security as domestically.
A contract has been signed enabling one of the world's largest
global financial institutions to use Mastercard Send for
cross-border payments. This agreement leverages the unique
capabilities of the HomeSend network to reach millions of
disbursement end-points.
As a delivery and technology partner of Mastercard for this
service, HomeSend expects to see a new stream of flows emerge from
Mastercard Send, as well as from some direct HomeSend wins,
following a number of signed new contracts through 2017 and into
2018. This includes a growing list of banks ranging from smaller
regional players to more recent wins with large global financial
institutions. Mastercard Send and HomeSend have now signed more
than 20 banks and the pipeline of other opportunities continues to
grow.
Experience of implementations indicates that commercial and
technical considerations are best served by 'dividing up' volumes
into containable project phases. eServGlobal notes that a planned
initial phase in a mid to large-sized bank typically involves
between US$0.5 billion to US$2 billion of volume. Visibility of the
subsequent phase(s) becomes clearer during the planning and
implementation of the first phase. For this new opportunity, live
first phase volumes are currently expected to begin by the third
quarter of 2018, with a second phase already identified and being
worked on. Test transactions have already been completed across a
number of corridors and the precise speed of volume build-up will
become clear as the transactions start to flow.
HomeSend expects to see a volume uplift over the course of 2018
and beyond. HomeSend can support delivery of cross-border
transactions into over 100 countries today, the potential exists to
grow the business by servicing this significant vertical
opportunity.
eServGlobal Executive Chairman, John Conoley said: "This
contract is one of the larger opportunities previously communicated
to the market and is a clear endorsement for HomeSend from one the
world's largest financial institutions. Banks of this nature have
the capability of sending multiples of billions of dollars per year
through a variety of channels. The rapid build-up of bank and
financial institutions now enabled to exploit the HomeSend network
has provided eServGlobal's Board of Directors with confidence that
the JV's pivot into the bank-led market is succeeding and has
provided a volume platform for the future of the business. This
spread of volume is critical to a small growing business and
HomeSend management have skilfully navigated that path and
de-risked the challenges faced by many start-ups."
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement via regulatory news service this inside information is
now considered to be in the public domain.
About eServGlobal
eServGlobal (AIM:ESG, ASX:ESV) is a pioneering digital financial
transactions technology company, enabling financial and
telecommunications service providers to create smoother
transactions for their customers through deep technical expertise
and rapid implementation. Built on the latest technology platforms,
eServGlobal offers a range of transaction services including
digital wallets, commerce, remittance, recharge, rapid service
connection and business analytics. eServGlobal combines more than
30 years' experience, with an agile, future-focused mindset, to
align with the requirements of customers and partners around the
globe.
Together with Mastercard and BICS, eServGlobal is a joint
venture partner of the HomeSend global payment hub, enabling
cross-border transfer between bank accounts, cards, mobile wallets,
or cash outlets from anywhere in the world.
For further information, please contact:
eServGlobal www.eservglobal.com
Tom Rowe, Company Secretary investors@eservglobal.com
Alison Cheek, VP Corporate Communications
finnCap Limited (Nomad and Broker) www.finnCap.com
Corporate finance - Jonny Franklin-Adams T: +44 (0) 20 7220
/ Anthony Adams / Hannah Boros 0500
Corporate broking - Tim Redfern
/ Richard Chambers
Alma PR (Financial Public Relations) www.almapr.co.uk
John Coles / Helena Bogle T: +44 (0) 208
004 4218
This information is provided by RNS
The company news service from the London Stock Exchange
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