"Merchant acquiring and payments". The West International website has been updated:
About West
West supplies smart transaction and payment solutions that help the company’s customers to rationalise trade in physical environments. Customers comprise systems integrators, distributors and end customers in the retail and visitor sectors. West was founded in 1988 and has been listed on Nasdaq OMX First North since 2007. The head office is in Upplands Väsby, where around 20 employees work in the areas of sales, project management, development, purchasing, warehouse and service.
West’s business focuses on three clearly defined product areas:
Card Terminals
West provides the infrastructure for the payment methods demanded by the market in the form of reliable card terminal solutions. These are certified to meet the card industry’s highest security requirements and
are prepared for the mobile card payments of the future.
Self Service
Standardised self-service solutions for smart payment and transaction applications, as well as solutions for enhanced security and efficiency in handling cash.
Cash Register Systems
Equipment and services for cash register and payment systems.
From the CEO
We had a strong end to the business year! With revenues slightly higher than 93 million SEK, 2017 resulted in a 21% growth compared to the previous year and the year has been strong in other aspects as well. We increased our gross margin from 45% to 58%. The operating profit increased by 160%, to 8 million SEK. Moreover, West has expanded its workforce, attracting employees with key competencies required to grow and develop the business further.
In 2017, our Payment Gateway was certified and approved. We are building on this strategic technical investment and are currently taking the next step in the company’s development, by creating a payment solution for online payments. As a result, those of our clients with needs for payments in physical environments, e-commerce and mobile apps, can have the complete solution delivered from one single supplier. This enables restaurant- or store chains to identify their customers, regardless of whether these are shopping onsite or online, something that is virtually impossible when you have payment systems from different suppliers.
Why is this so important? Well, as the cashless society is soon likely to become a reality, we will see a global increase in the demand for online payment solutions. One example is the Bank of Finland, which has estimated Finland to become entirely cashless in little more than 10 years. The global value of card payments that are made online is estimated to grow by up to 15% annually until 2021. This is more than twice as much as the total global payments market. At the end of this period, the number of card payments that are made online is estimated to amount to 18%. We will now be one of the very few suppliers who are able to handle card payments in all channels with one common payment platform. Thereby, we are strengthening our customer offerings on all markets and are increasing our transaction-based revenues.
On our home market, our business is developing successfully. We are very happy that Svenska Handelsbanken, one of Sweden’s leading banks with long-standing roots, is now one of our customers. Handelsbanken is a leading player within the field of card acquiring and will henceforth be using West products to deliver a complete card payment solution to their customers in the Nordic countries. I have previously mentioned that our industry is buzzing with activity, and several industry players are taking a bigger share of the value chain. This development is favourable from West’s perspective as it increases the demand for independent suppliers even further. Our deal with Handelsbanken is a brilliant example of this!
Max Burgers is one of our important customers. The fast food chain has continued to experience considerable success with the self service concept of its restaurants. Recently we signed a deal with them where we will replace all remaining payment terminals in their existing self-service kiosks, which, until now, have been provided by another supplier. We are proud that they continue to place their trust in us!
In Australia we have decided to expand our business approach. We will from now on start to collaborate with several different distribution partners. The market is of considerable size and the demand for our payment solution is widespread. Even though this process has dragged on for some time, our business intent of completing the West payment solution for the Australian market is still firm. The project of connecting and certifying our Payment Gateway against the local banking network is progressing and is estimated to be completed during 2018.
Our efforts on new markets are now bearing fruit. Shortly before year end we delivered a major expansion order to Interblocks, our partner in Asia. The order came through due to the fact that Commercial Bank in Sri Lanka is maintaining a high delivery rate to its customers. Another reason is that yet another big Sri Lankan bank, Sampath Bank, will shortly begin delivering payment terminals to their merchant customers. The most gratifying aspect is that the customers’ reactions have been very positive.
In our line of business, in which we are highly dependent on external partners, dedication and patience are key virtues. At West we follow a clearly laid out strategy for the coming years, but, given our considerable pioneering spirit, we do not hesitate to take advantage of any business opportunities that might arise. Sometimes we encounter bumps in the road and certain things take longer than expected, but we know that we are on the right track. During 2018 we will continue to make important technology investments and further develop the markets we address. I look forward with confidence to continuing our business growth in the year to come.
Sten Karlsson, CEO of West International AB
