Spenda payments platform to be rolled out across Carpet Court franchise network
Spenda will receive revenue from SaaS fees and transaction-related payment fees, which will be calculated on payments and volume processed.
Payments technology provider Spenda (ASX: SPX) has confirmed it will roll out its proprietary platform across the franchise network of national flooring retailer Carpet Court in the new year.
The decision follows the completion of a pilot program whereby a bespoke version of the platform (known as the CC Spenda Platform) was integrated into 40 Carpet Court stores with the aim of delivering business efficiencies through software and payment services.
The platform is expected to increase productivity and streamline operations for Carpet Court’s 205 outlets as well as its national support centre by automatically allocating and reconciling payments into accounts payable and receivable ledgers at a store and group level.
Revenue streams
Under the terms of the roll-out, Spenda will receive revenue streams from monthly Software-as-a-Service (SaaS) fees and transaction-related payment fees, calculated by way of payment volumes processed.
Carpet Court currently processes approximately $21 million per month in payment volumes between member stores and the support centre.
Once fully deployed and assuming no change to Carpet Court’s revenue and payment utilisation, Spenda expects to earn baseline fees of up to $75,000 per month or up to $900,000 per year.
Spenda said it would also make a working capital facility available to Carpet Court members to enable increased payment flexibility and extended credit services.
Significant uplift
Spenda’s services are expected to generate significant uplift for Carpet Court’s national support centre and allow it to better predict its cash flow due to a recently-established debt warehouse facility.
The centre will be able to draw funds from the facility and advance it to individual stores to help pay their invoices.
Spenda said it would also have the opportunity to sell its retail services bundle (including a point-of-sale solution and merchant services) to the Carpet Court network.
Product maturity
Spenda managing director Adrian Floate said the deal would showcase the maturity of the company’s software, lending and payments stack.
“What we are solving for Carpet Court is industry agnostic,” he said.
“The desire to provide extended and flexible payment terms, e-invoicing integration and greater cashflow visibility penetrates the whole supply chain.”
Roll-out of the Spenda platform throughout the Carpet Court network is scheduled for completion before June 2023.