Klevo Moves to Add Crypto-Backed Credit to Fly Wallet with Licence Acquisition

Strategic Acquisition to Unlock Crypto Credit

Klevo Rewards Limited (ASX:KLV) has taken a decisive step toward embedding credit functionality into its Fly Wallet ecosystem by entering a Heads of Agreement (HOA) to acquire Just Ask Solar Pty Ltd, the holder of an Australian Credit Licence (ACL). The indicative purchase price is $150,000, positioning Klevo to develop crypto-centric, credit-enabled rewards and payments for its users.

The acquisition, still subject to due diligence and regulatory approvals, is a clear signal of Klevo’s ambition to expand its regulated financial services infrastructure and enhance the Fly Wallet experience. If completed, Klevo would be able to offer credit products backed by its own Australian dollar-pegged stablecoin, aiming to reduce declined transactions caused by insufficient funds in users’ cash accounts.

Addressing Declined Transactions and Missed Revenue

Fly Wallet’s recent performance underscores the scale of opportunity. The platform processed approximately $344 million in gross dollar value (GDV) during the relevant period, representing 164% year-on-year growth, alongside 3.2 million transactions, up 67% year-on-year. Yet, the platform recorded around 243,000 declined transactions in Q1 2026, with 58% linked to insufficient funds or over-credit-limit issues. This equates to an estimated $15.2 million in missed transaction value for the quarter alone.

Klevo’s plan to introduce credit functionality aims to tap into this lost revenue by enabling eligible users to access credit at the point of sale. This capability would complement the existing rewards and loyalty offerings, potentially increasing transaction approval rates and allowing more cardholders to participate in cashback, merchant offers, and loyalty benefits. The move reflects a broader trend where payments platforms seek to integrate credit to smooth user experiences and capture more transactional volume.

Navigating Regulatory and Mastercard Hurdles

The rollout of credit products is contingent on several regulatory and commercial approvals. Klevo is actively working with Mastercard to secure a consumer credit BIN, a critical step for enabling credit functionality on the Fly Wallet card. This process remains subject to Mastercard’s approval, compliance with credit laws, responsible lending obligations, and Klevo’s internal risk frameworks.

The company’s recent receipt of over $2 million in Mastercard incentives, including $1.7 million in cash and $300,000 in service credits, highlights the growing commercial momentum behind Fly Wallet’s payments and rewards strategy. This financial endorsement coincides with Klevo’s efforts to deepen platform capabilities and user engagement through credit, stablecoin integration, and rewards expansion, building on earlier initiatives such as the KLVAUD stablecoin launch and Fly Wallet GDV surge.

Balancing Innovation with Compliance

Klevo CEO Alexander Gold emphasised the strategic rationale behind the acquisition, noting the meaningful opportunity to improve customer outcomes by reducing ‘insufficient funds declines’. The company intends to develop any credit products within a robust compliance framework, adhering to applicable credit laws, product governance, and responsible lending standards.

This cautious approach is critical given the complex regulatory environment surrounding crypto-linked financial products in Australia. Klevo’s prior engagement with legal experts to navigate the stablecoin launch regulatory framework demonstrates a commitment to compliance as it ventures into credit offerings.

While the HOA marks an early stage in Klevo’s credit ambitions, it lays the groundwork for a potentially transformative enhancement to Fly Wallet’s value proposition. The integration of credit could unlock more seamless payments, boost merchant engagement, and deepen loyalty program participation, but the timing and financial impact remain uncertain pending due diligence and approvals.