Provenco in $13m Shell eftpos deal

Local eftpos specialist Provenco has won a contract with oil giant Shell to install new eftpos terminals across Southeast Asia.

The deal, worth up to US$9 million ($13.14 million), will see Provenco installing thousands of terminals at the pumps of Shell stations throughout the region.

The number and location of units will be determined in the next few months.

New Provenco CEO David Ritchie says the deal gives the company a tremendous leg-up in the eftpos market as it moves to a new standard.

"It positions us extremely well. There are no guarantees that Shell will go beyond Asia with us but it leaves us well placed."

The new international security standard for bank cards requires chips instead of magnetic stripes.

These smart cards would be rolled out globally over the next six or seven years, said Ritchie, and this deal gave Provenco access to that market.

The new terminals are designed and built in New Zealand but already worldwide demand is running hot.

"We are rolling out in Malaysia with the local oil company there."

New Zealand is moving away from card payments at the pump, but overseas Ritchie said the market was quite different.

"The US is the leader of card payment at the pump where 95 per cent of all pumps have card readers in them."

Provenco shares jumped 10c or 16 per cent after the announcement to end the day at 71c.