OFX partners with Link Market Services for cross-border transactions
Written on the 18 September 2019 by Business News Australia
Cross-border payments service provider OFX (ASX: OFX) has entered into an exclusive partnership with Link Market Services (ASX: LNK).
The partnership will see OFX provide Link with an end-to-end digital cross-border payments solution that will improve Link's shareholding management platform.
The service will initially be offered to investors who currently use Link to receive dividends in cross-border transactions. The partnership between the two will be for five years initially and is expected to launch in March 2020.
With the integration of OFX's technology, it will be easier and cheaper for offshore investors who hold investments in listed Australian companies to transfer their funds internationally.
In a statement to the ASX, OFX says the partnership will generate around $5 million in annual fee and trading income by FY22.
"We are delighted to partner with a well-known and trusted company like Link," says OFX CEO and managing director Skander Malcolm.
"Our exclusive strategic relationship will make international payments simple and great value for their clients' offshore investors. Our leading digital platform provides competitive pricing, control and visibility of international transactions while our global support network provides best-in-class service. Combined with Link's reach, this will enable clients to benefit from a considerably better experience, not just for their dividends and share sales but for all their cross-border transactions."
"The Link partnership is an important part of our growth strategy as we continue to focus on expanding our Enterprise partner solutions and provides another way to build our base of active customers. We are also in discussions with Link about expanding the partnership to include a wider reach of its clients and their investors."
Link's corporate markets CEO Lysa McKenna says the partnership will greatly improve the company's offering for clients that invest overseas.
"The partnership is part of our ongoing commitment to continually enhance our offering to clients and their investors, especially through the use of customer-centric technology," says McKenna.
"OFX's commitment to customer service, speed of delivery, savings and global client coverage, were all important deciding factors for us when considering who would be an ideal international payments partner."
Shares in OFX are up 6.29 per cent to $1.52 per share, and shares in Link are up one per cent to $5.54 per share at 10.26am AEST.
Business News Australia
Author: Business News Australia