Ann: emerchants Signs 3 year Agreement with CCIG , page-3

re: Ann: emerchants Signs 3 year Agreement wi... http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=EML:asx

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Emerchants Limited operates in the financial services arena and is focused on the pre-paid financial card market.

The company is looking to develop awareness of prepaid debit as a solution for expense management, which has the potential not only to limit spending, but could also reduce fraudulent activities.

This could be a real growth area for the company, with possible applications within corporate and government expense areas, and has the potential to be expanded into other currencies for frequent business travellers.

Late last year, Emerchants signed a five year agreement with Queensland’s Department of Treasury and Trade to become its preferred supplier of prepaid card solutions.

This includes the option of two consecutive 2 year contracts which could take it to 9 years.

The use of prepaid cards allows the Queensland Treasury Department and its various departments to benefit from cost savings, fraud control, and risk control advantages over traditional methods of funds disbursement such as credit cards, cash and cheques.

Emerchants has also partnered with Visa to create marketing and training materials to support the launch of the prepaid card program.

The company is now capitalised at almost $100 million.