OFX Group enters into strategic partnership with Link Market Services
The partnership will be supported by a capital expenditure investment of approximately $2 million in FY20, funded by cash.
Provider of online payment services OFX Group Ltd (ASX:OFX) today announces a partnership with Link Market Services Limited, which will see OFX become Link’s preferred partner in Australia for international payments such as dividends and corporate action payments on Link’s Investor Centre platform. As a result, offshore investors who hold investments in listed Australian companies that use Link as their register will find it easier and cheaper to transfer their funds internationally.
The Partnership, which is for an initial term of five years, is set to launch in March 2020. It is expected to generate approximately $5 million in annual Fee & Trading Income by FY22, subject to the number of new active clients. The partnership will be supported by a capital expenditure investment of approximately $2 million in FY20, funded by cash.
Via the partnership, Link will get an end-to-end digital cross border payments solution that aims to improve each part of the payment journey from client onboarding to execution and settlement. Investors are poised to benefit from cheaper, simpler and more convenient cross border payments in over 55 currencies and will have access to OFX’s dedicated local and global payment specialists, easy to use, secure online platform and 24/7 customer support.
The service will initially be offered to investors who currently use Link to receive dividends in a cross-border transactions. In some international jurisdictions, OFX will access these investors indirectly via Link corporate clients. All of Link’s Australian clients will have access to OFX’s online platform and 24/7 customer support.
OFX’s CEO and Managing Director, Skander Malcolm said:
“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 Group’s Corporate Markets (APAC) CEO, Lysa McKenna said:
“The partnership is part of our ongoing commitment to continually enhance our offering to our clients and their investors, especially through the use of customer-centric technology. 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.”