Spenda Eyes $1.7M Annual Profit from New Corporate Credit Platform Backed by APG
Spenda Limited has partnered with APG Pay to develop a closed-loop corporate credit platform, backed by a $50 million funding commitment, aiming to transform B2B payments across multiple industries starting with corporate travel.
- Spenda and APG Pay enter 10-year exclusive technology and funding agreement
- Initial $50 million capital committed by APG to develop closed-loop corporate credit platform
- Platform launch set for July 1, targeting AirPlus travel customers in Asia-Pacific
- Revenue-sharing model expected to generate approximately $1.7 million annual gross profit
- Expansion planned into automotive, real estate, and trade services verticals
Strategic Partnership to Revolutionize B2B Payments
Spenda Limited (ASX – SPX), a technology company specializing in embedded finance and payment solutions, has formalized a significant partnership with APG Pay Pty Ltd, a subsidiary of Singapore-based APG Tech Pte Ltd. The collaboration centers on the development and commercial rollout of a next-generation closed-loop corporate credit platform designed to serve multiple B2B industry verticals.
This agreement marks a strategic pivot for Spenda, transitioning from traditional on-balance-sheet lending to an embedded credit enabler model. By integrating APG’s credit products into Spenda’s existing software infrastructure, the partnership aims to streamline corporate payment flows while mitigating credit risk exposure for Spenda.
Capital Commitment and Revenue Model
APG has committed an initial A$50 million to fund the platform’s development and growth, with capital allocations expected to scale alongside business expansion. The two companies have agreed on a 10-year exclusivity arrangement, with an option to extend for another decade, underscoring their long-term commitment.
Financially, Spenda anticipates generating recurring gross profits of approximately A$1.7 million annually, based on FY24 contracted payment volumes provided by APG. Revenue streams will include fees on all transacted payment volumes and ongoing platform maintenance and service fees, supported by a mutually beneficial profit-sharing model.
Phased Rollout Starting with Corporate Travel
The platform’s initial launch is scheduled for July 1, 2025, focusing on the corporate travel sector. This phase will support the transition of AirPlus Business Credit customers across Australia, New Zealand, Hong Kong, and Singapore, ensuring continuity as the AirPlus product is phased out. Additionally, Spenda’s existing supply chain customers, including the Carpet Court channel, will be integrated into the platform.
Subsequent phases will expand the platform’s reach into other industry verticals such as automotive, real estate, and trade services, positioning the partnership to capture a broader slice of the Asia-Pacific B2B payments market.
Implications for the B2B Payments Landscape
Managing Director Adrian Floate highlighted the strategic significance of this deal, emphasizing the shift towards embedded finance solutions that leverage software to manage lending and payments without direct credit risk. The partnership reflects confidence in Spenda’s technology and execution capabilities, aiming to scale existing customer networks and develop new portfolios.
As embedded finance continues to reshape how businesses manage working capital and payments, this collaboration between Spenda and APG Pay could set a new standard for integrated, scalable B2B credit solutions in the region.
Bottom Line?
Spenda’s shift to embedded credit with APG Pay signals a new era in B2B payments, but execution and adoption will be key to unlocking its full potential.
Questions in the middle?
- How quickly will AirPlus customers transition to the new platform, and what adoption rates can be expected?
- What are the risks associated with the 10-year exclusivity agreement for Spenda’s future partnerships?
- How will the platform’s expansion into other verticals impact Spenda’s revenue growth and market position?
