BPS SHARES BOLSTERED BY CHINA, US DEALS
Written on the 27 May 2016 by Nick Nichols
BPS Technology (ASX: BPS) has expanded the reach of its Bartercard trade exchange business in the US through the sale of three new franchises.
The new businesses, in Tennessee, California and Georgia, bring the number of US franchises for Bartercard to 10.
The latest deal comes on the heels of BPS Technology securing a master agreement with SmartTrans (ASX: SMA) to promote and sell products in China through Alibaba's e-commerce platform.
The deal paves the way for Bartercard merchants to sell their products in China and be paid through SmartTrans' online payments system.
"The international expansion of the Bartercard business has been a key component of BPS' growth plans since listing on the ASX," says BPS Technology's CEO Trevor Dietz after today's US announcement.
"The trade exchange market in North America represents a significant opportunity for Bartercard, and Paul Bolte and the entire Bartercard US team are to be congratulated on signing three new franchisees in such a short period of time.
"Bartercard is committed to engaging with successful business people who are both established and well respected in a given area.
"These people of character can use their connections and strong reputations to expand the business network that allows opportunities for SMBs to grow their operations, employ more people and generate greater profits in their region."
Bartercard's US operations achieved 124 per cent growth in revenue in the six months to the end of December last year, although the company concedes that has come off a low base.
BPS Technology shares have surged more than 20 per cent in the past two weeks, led largely by the new agreement with SmartTrans. The shares remain steady at $1.02 following today's announcement.
Dietz says the deal with SmartTrans will drive further expansion of its key business offering in China, which has an e-commerce market worth close to $1 billion.
"Over time BPS will seek to expand its presence in the Chinese market with its Chinese partners and plans to progressively roll out its payment and rewards technology platforms including TESS and Bucqi," Dietz says.
TESS is a technology business that offers support platforms for global trade exchanges similar to Bartercard, while Bucqi is a new customer rewards app that the company has started rolling out to Bartercard members.
Author: Nick Nichols