FairFX Group Plc (LON:FFX) shares surged in early trading Wednesday as it was poised to enter the US market after entering an agreement with New York-based Metropolitan Commercial Bank to provide payments services to its customers.
In an announcement after close on Tuesday, the multicurrency and e-banking services firm said it expected to enter into a multi-year contract with Metropolitan in the first quarter of 2019 which would enable it to service US demand for its products and grow a customer base in the country.
The binding term sheet signed with Metropolitan covers both international payments and prepaid card issuance, with FairFX adding that there was “a strong demand” for its Corporate Expense platform across the US and that the agreement would allow it roll out the product more widely.
The company plans to have its international payments service operational in the US by the first quarter of next year, while card issuance is planned for the second quarter.
Metropolitan operates full-service banking centres in Manhattan; Boro Park, Brooklyn; and Great Neck, Long Island with products spanning areas including debit, prepaid, incentive, gift, payroll and pre-tax benefit.
Ian Strafford-Taylor, chief executive of FairFX, said the deal was “a huge opportunity” for the group and would allow it to maximise its current opportunities and “access the wider potential of the US market for the Group from an operational basis”.
Shares were up 6% at 115.5p.