Mint share price soars 49% on new deal

Mint Payments Ltd (ASX:MNW) signs new deal that could accelerate transaction volumes and revenues

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published December 10, 2015 3:11 pm AEDT

The Mint Payments Ltd (ASX: MNW) share price has rocketed up 49% to 10 cents after the company announced a new deal with an NYSE-listed international payment technology provider.

Mint says the deal encompasses three agreements:

Distributing Mint's mPOS solution to its network of resellers and merchants – Mint to receive a recurring monthly fee per user from the merchant and a share of the transaction fees;
Becoming an acquiring partner for Mint and its distribution partners' card present and card not present solutions; and
Becoming a transaction-switching provider for Mint, allowing Mint to provide its solutions to any financial institution or enterprise merchant on the partners' network.

The company says it will allow the partners' merchants to accept Visa, Mastercard, Amex and EFTPOS payments on iOS or Android devices (such as smartphones). Mint will supply those merchants with the M010 Bluetooth device, which is contactless ready, allowing merchants to accept PayWave, PayPass or token-based wallet payments such as Apple Pay.

The new deal should see Mint's revenues and cash receipts soar. In the September quarter, Mint reported a 35% increase in cash receipts to $2.3 million compared to the previous year. Transaction volumes are growing fast too – up 417% on the Mint payments platform.

Foolish takeaway

While still a speculative bet that Mint will become profitable at some stage down the track, this newly announced deal should see that occur sooner.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.