Stakk’s Rapid Growth Hinges on New $3.05m U.S. Embedded Finance Partnership

Strategic Expansion into U.S. Market

Stakk Limited (ASX – SKK), a rising player in Embedded Finance technology, has announced a significant three-year agreement with Sharetec Systems, Inc., a U.S.-based core software provider for credit unions. Valued at approximately A$3.05 million, this deal marks a pivotal step in Stakk’s rapid growth trajectory, particularly in the competitive U.S. financial technology landscape.

Sharetec, owned by Evergreen Services Group, is known for its agile and cost-effective software solutions tailored to credit unions. Integrating Stakk’s Embedded Finance capabilities; including image capturing, authentication, and transaction processing; enhances Sharetec’s offering and provides Stakk with a valuable foothold in the American market.

Revenue and Client Base Growth

This agreement is expected to generate annual recurring revenue (ARR) of around USD 660,000 (A$1.016 million), contributing roughly $1 million per year to Stakk’s revenue stream. With this addition, Stakk’s total ARR surpasses $3 million, a milestone reflecting the company’s successful expansion efforts.

Beyond the financials, the deal brings 147 new financial institutions into Stakk’s client portfolio, swelling its Embedded Finance user base to over 200 banks and credit unions, alongside 8 neo banks and 2 fintech partners. This broadening network not only diversifies Stakk’s revenue sources but also solidifies its position as a trusted provider in both Australian and U.S. markets.

Leadership Perspective and Market Implications

Andy Taylor, CEO of Stakk, emphasized the strategic importance of this partnership, highlighting it as a testament to the company’s commitment to rapid growth and innovation. He described the current phase as an “inflection point,” underscoring the significant investments Stakk is making to expand its Embedded Finance solutions and market reach.

For investors and industry watchers, this development signals Stakk’s increasing relevance in the fintech sector, particularly as embedded financial services become more integral to banking and credit union operations. The partnership with Sharetec could pave the way for further collaborations and accelerated growth in North America.