- Deal with Visa is set to enable faster cross-border payments
CAB Payments shares jumped on Thursday as the group revealed a cross-border payments collaboration with Visa.
The fintech firm, which listed on the London Stock Exchange last summer, said the agreement would help enable ‘fast, efficient and reliable’ payments and foreign exchange, especially across the complex ‘last mile’ stage of a payments process.
CAB customers, such as charities, will be able to move much lower value payments across emerging markets cost-effectively and settle those payments directly into an eligible card, account or wallet.
Collaboration: CAB has teamed up with Visa to enable faster cross-border payments
‘Making this type of low value payment across emerging markets has historically been challenging due to the additional costs incurred in jurisdictions regulators consider higher risk,’ the group said.
Boss Neeraj Kapur, chief executive officer of CAB, added: ‘This collaboration is hugely significant for our clients. Our combined capabilities and expertise mean we’re able to reduce the cost and friction associated with moving money across hard-to-reach markets: getting more funds delivered more efficiently to those who need it the most.’
CAB Payments shares jumped 5.8 per cent to 114.7p in early trading.
However, they remain far below their initial public offering price of 335p.
It follows a single-day plunge of more than 72 per cent in October 2023, when CAB warned currency volatility, particularly with regard to Nigeria’s naira, would hit profits.
London-based CAB specialises in providing foreign exchange services and processing payments between developing countries.
It started in 2016 when private equity investor Helios Investment Partners acquired the financial services arms of Crown Agents Bank, which was originally established in 1833 to procure goods and services for colonial administrators.
Last month, Kapur told investors that CAB expects a stronger second half thanks to ‘initiatives and actions we are taking to build a more sustainable, diversified, and growing business over the medium term’.
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