Spenda Limited announced that following an eight-month program of works, the Company has now launched its PayFac merchant payment services. These new payment services complement and enhance the Company's existing Business-to-Business (B2B) and Business-to-Consumer (B2C) payment rails as well as the Company's current and planned future lending services. The PayFac launch unlocks improved efficiency for the Company that includes: Removing the duplicate sharing of compliance data when the Company bundles multiple service lines; The enablement of credit approval for both payments and lending in the same process (assuming customer eligibility); A reduction of Spenda's compliance costs; A reduction of Spenda's data breach risk; and
A reduction in the cost of issuing and the enablement of the standardisation of Customer statements. PayFac services will be rolled out into Spenda's existing customer network as an upgrade offer while simultaneously being offered to new customer programs as a solution to reduce operating costs, increase loyalty and drive Spenda's total customer value. The Company anticipates growing the initial $1m ARR, as new implementation programs are delivered. An important point to note is that the lead time to revenue generation from these services is relatively short, therefore, the Company will update the market as it observes material increases in the run rate or sign up new customers or partner networks which lift ARR estimates to higher maintainable levels. As previously announced, existing customer networks such as Carpet Court have been or will be offered PayFac payment services. The launch of the PayFac capabilities provides Spenda and its partners with a substantial merchant acquisition and revenue opportunity that it believes will demonstrate Spenda's unparalleled competitive position as a payments company, with an ability to aggregate entire vertical markets and monetise flows from consumer to retailer all the way through to primary producer.