Planet Payment's (PLPM) CEO Carl Williams on Q1 2016 Results - Earnings Call Transcript

Planet Payment, Inc. (NASDAQ:PLPM) Q1 2016 Earnings Conference Call May 4, 2016 5:00 PM ET

Executives

Raymond D'Aponte - Chief Financial Officer

Carl Williams - Chairman and Chief Executive Officer

Robert Cox - President and Chief Operating Officer

Analysts

George Sutton - Craig-Hallum

Matt Blazei - Lake Street Capital Markets

Gary Prestopino - Barrington Research

Michael Grondahl - Northland Securities

Operator

Greetings, and welcome to the Planet Payment first quarter 2016 earnings conference call. [Operator Instructions] It is now my pleasure to introduce your host, Ray D'Aponte, Chief Financial Officer. Thank you, Mr. D'Aponte. You may begin.

Raymond D'Aponte

Thank you, operator. Good afternoon, everyone. With me on today's call are Carl Williams, our Chairman and CEO; and Robert Cox, our President and Chief Operating Officer.

By now, you should have access to our first quarter 2016 press release. It can also be found at www.planetpayment.com under the Investor Relations section.

Throughout this conference call, we will also be presenting certain non-GAAP financial information. This information is not calculated in accordance with GAAP and may be calculated differently from other companies similarly titled non-GAAP information. Quantitative reconciliations of our non-GAAP financial information to the most directly comparable GAAP financial information appear in today's press release.

Before we begin our formal remarks, I need to remind everyone that part of our discussion today will include forward-looking statements. Such forward-looking statements do not guarantee future performance and therefore you should not put undue reliance upon them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Some of these risks are mentioned in today's press release. Others are discussed in our Form 10-Q, which is available at www.sec.gov as well as on our website.

These forward-looking statements, including guidance provided during this call, are valid only as of today's date and we assume no obligation to publicly update these forward-looking statements.

Today, we're going to provide a brief summary of the company's activities, discuss some of our key business metrics and growth drivers for our business, and give an overview of our results for the first quarter. We will then open the call up for any questions you might have.

With that, I would like to turn the call over to Carl Williams, our Chairman and CEO. Carl?

Carl Williams

Thank you, Ray, and thank you all for joining us this afternoon. We are pleased once again with the quarterly results we will be sharing with you today. This steady pattern of profitability for eight consecutive quarters further affirms that the strategic plan we embarked upon a little over two years ago has placed Planet Payment on the path of predictable growth and profitability.

During the quarter we saw revenue growth of 13% to $13.7 million, adjusted EBITDA was $3.2 million and our EBITDA margin increased to 24%. We remain committed to our strategic plan to transform Planet Payment into a sales-driven and operationally efficient organization.

Based on the results of Q1 and the previous quarters, I think we are well in our way to achieving our strategic goals. We have continued to produce positive results by directing our collective efforts towards projects and initiatives, generating new revenue growth.

We were able to achieve several milestones around our multi-currency segment this past quarter, including the expansion of our geographic footprint into new market. The successful cross-selling of new products with existing customers in Asia Pacific as well as the launch of Pay in Your Currency with new partners in existing markets in Asia Pacific.

Additionally, we continue to mine opportunities in the processing sector with both Visa and UnionPay. Our partnership with Visa should allow us to further expand into emerging and frontier market, where the continued acceleration from cash to electronic payment presents opportunity for growth. Similarly, as one of the few providers of a turn-key UnionPay e-commerce solution, we are well-positioned to deliver solutions to merchants, seeing to take advantage of the versioning e-commerce market in China.

Turning to some specific business highlights, let's start in North America. In Canada, the weak Canadian dollar continues to be strong motivating factor for banks and their merchants to take advantage of the increasing level of inbound international visitors. We announced last quarter the signing of a multi-currency agreement with Moneris, Canada's leading payment processor.

Our teams have been working closely with Moneris to ensure the successful launch of Pay in Your Currency and Multi-Currency Pricing solutions to Moneris considerable base of merchant across multiple industry vertical. Our launch of services is on track for the second half of this year. Also in Canada, our relationship sales team continues its ongoing work with Global Payment to expand Pay in Your Currency acceptance through both point-of-sale terminals and our integrated hospitality solution.

In the U.S., we have seen the expansion of our partnerships with a leading cash access provider in the casino industry to deploy our Pay in Your Currency solution to their gaming property. This solution allows international customers completing cash advance on the casino floor across multiple devices or at a casino cage to complete the transaction in their home currency.

We are working with this partner to rollout the solution to their considerable base of casinos across the United States. With a typically high-level of international visitors to casinos worldwide, there are also ongoing discussions to extend this service to international market, served by this partner to replicate our success abroad.

In Latin America, we announced in Q1 that Cielo extended its agreement to offer Pay in Your Currency in Brazil for an additional three years. We view this contract extension as a commitment from Cielo to Pay in Your Currency as a product and Planet Payment as a partner. As we discussed on our last call, Cielo is the largest acquirer in Brazil is making solid progress, as we work to enable their substantial merchant base with Pay in Your Currency.

In the near term, we anticipate announcing our entry into a new market in Latin America with our agreement to provide our multi-currency solutions to a large acquirer in that region. This agreement includes Pay in Your Currency for both standalone terminals and our integrated hospitality solution, as well as DCC at ATM. Our teams will continue to close coordination on the implementation of Pay in Your Currency with this new partner in the second half of this year, beginning with standalone terminal.

In India, we are readying the launch of Pay in Your Currency with HDFC Bank, the largest merchant acquirer in India. We believe that HDFC chose Planet as its provider for dynamic currency conversion, due to our expertise in delivering solutions that provide a best-in-class experience for both merchants and cardholders. We look forward to rolling out to HDFC's considerable base of hotel, retail and restaurant merchants in the second half of 2016.

We continue to make progress on expansion of our DCC at ATM product. This success is being fueled by a number of factors, including strong adoption on the part of consumers as measured by those agreeing to complete the transaction in their billing currency. Additionally, we are finding that ATMs are an efficient channel for distribution for our DCC solution. Thanks in part to the function of the ATM device, which allows a sizeable screen for the display and presentation of the currency offered directly to the cardholder.

In terms of our progress with new customers and new markets, our teams continued the successful cross-selling of DCC at ATM to our existing point-of-sale customers. In late 2015, we announced the successful launch of DCC at ATM in the EMEA region with Mashreq Bank, who has been an important customer of our point-of-sale offering.

This past quarter marked an additional milestone for the first implementation of DCC at ATM product in Asia Pacific with CIMB Bank in Malaysia. CIMB Bank operates the largest 24 hour ATM network in Malaysia and we are happy to expand our partnership with them to include our ATM solution.

This new pilot is an important expansion of our relationship with CIMB. We launched Pay in Your Currency across CIMB's merchant base of retailers, hotels and restaurants less than a year ago and view this product expansion to ATMs as affirmation of the value of dynamic currency conversion across both the point-of-sale and ATM environment.

I'd also like to briefly touch on our processing initiatives during this past quarter. As I detailed on last call, in Q1 we announced an agreement with Visa to deliver feature-rich and easy-to-deploy payment solutions to acquirers and merchants in emerging and frontier markets.

In addition to this new initiative, our partnership includes the deliver of a processing solution with Grupo Bimbo in Mexico to drive payment acceptance with other commercial services to our terminal device, as well as our work in Myanmar to support turn-key point-of-sale and ATM processing are ongoing.

With this new initiative, we will continue to work with Visa to identify new business opportunities in these and other emerging regions, with a shared goal of delivering to acquirers and merchants across the globe new and innovative payment processing solutions that provide new tools for merchants to grow their business and increase efficiency.

In regards to UnionPay, we are building upon some early significant merchant wins by selectively targeting merchants with considerable volume from Chinese customers, but who had previously only supported inconvenient and expensive payment options, such as wire transfers.

Our principal membership in UnionPay makes Planet Payment one of the few providers that can offer U.S. and Canadian-based merchants a complete turn-key processing solution, with all of the components necessary to accept UnionPay credit, debit and bank transfers. We remain focused on building the engine of future growth, both in the form of cross-selling additional products to existing customers and developing a solid pipeline of new acquirers and processors in new and existing geography.

Just to highlight a few opportunities, we are working with an acquirer in the EMEA region on a Multi-Currency Pricing solution for our large e-commerce merchants. Additionally, we are continuing to cultivate new DCC at ATM initiative with new and existing partners in Mexico and United States. Finally, we are seeing strong demand for our Pay in Your Currency product and we are working to finalize new arrangements with acquirers in EMEA, the Americas and Asia Pacific.

In short, this increasing demand for our core multi-currency processing product suite highlights our continuing ability to deliver solutions that are both relevant to the market and meet the business and technical requirements of our customers. As you can see, this past quarter we continued to build on our significant momentum. We remain committed to the execution of our strategic plan, which has placed Planet Payment on a path for strong and predictable revenue growth and increased profitability.

Additionally, on March 10, we announced our intention to repurchase additional shares through a Dutch auction tender offer. The tender offer successfully closed on April 11, resulting in the repurchase of an additional 3.9 million of our shares at a cost of approximately $14 million.

The tender offer and our buyback plan demonstrates our belief and the positive prospects for our company and our commitment to deliver shareholder value. Ray will give you details around the cumulative results on these efforts, since the beginning of the program, later in this call.

With that, I will hand the call over to Bob, who will provide detail around some of our operational highlights for Q1.

Robert Cox

Thank you, Carl. Our Q1 results affirm our belief that our efforts to improve operational efficiency continue to produce positive result. We have spent the last two years completing a top-down review of our cost structure, implementing changes necessary to increase our profitability potential.

Our focus on initiatives that drive long-term growth as well as aligning our operations to support the need of our sales teams has proven an effective strategy. We have been able to streamline our business to enable revenue growth, while ensuring we have the resources needed that definitely address our development and operational need to achieve business success.

We believe that the recent successes as well as the potential new opportunities that Carl highlighted earlier, serve to reinforce the strength and flexibility of our technology, as well as our expertise in delivering best-in-class solutions that deliver maximum results. Let me reiterate a few of the initiatives in process that we believe will drive future growth.

First, a number of new Pay in Your Currency implementations have been completed or are underway in several markets across the globe. In India, we are completing the technical integration with HDFC, and look forward to the rollout of services to the bank's merchants across India.

India has seen steady growth in tourism, and our best-in-class offering, which focuses on customers choice and merchant usability, will serve us well in the market. This solution will be a true international offering, supporting the option to pay in over 170 currencies.

In Bahrain, we've recently launched services with Ahli United Bank or AUB. Bahrain represents our newest Middle East market. In Africa, we are working with Kenya Commercial Bank and expect the rollout of Pay in Your Currency services late in 2016.

In Mexico, we continue the expansion of our initiative with the Banorte to include the rollout of Pay in Your Currency on standalone point-of-sale terminals and with Bancomer's hospitality merchants to take advantage of the significant tourism markets there. As Carl mentioned earlier, we expect to pilot soon with Moneris in Canada, and are on track to commence the rollout of our services in the Canadian market with our newest partner there in the second half of this year.

In South America, our teams are working on a multi-facetted implementation with a new partner to incorporate Pay in Your Currency into both their standalone terminals as well as our integrated hospitality solution. This is expected to launch in our second half as well.

In America, our partnership with a leading international cash access provider in the gaming industry has seen significant growth in terms of property expansion, and our hope is to get more casinos properties live both in the U.S. and abroad as the year continues.

These Pay in Your Currency implementations represent the completion of a process that began with the establishment of a very robust pipeline by our sales and business development teams in prior quarters. Our technology and operations teams have worked with a variety of terminal types and integrated systems in order to bring our multi-currency solution to these acquirers and their merchants. We are confident that with each new integration in existing and new region around the world, Planet's growing capabilities and delivering timely solutions to merchants are second to none.

The ongoing rollout of our DCC at ATM solution continues with Payment Alliance International, Columbus Data system and Vantiv in United States, and with Scotiabank in Mexico and with Mashreq in the United Arab Emirates. Our launch with CIMB in Malaysia represents our initial efforts in Asia Pacific. With each new integration of bank owned and independent ATMs in these existing and new regions around the world, Planet's capabilities are growing stronger.

In total, Planet Payment has certified over 60 individual point-of-sale terminals for our 70 acquirers across 21 markets, providing a considerable network of device options for merchants seeking to participate in Pay in Your Currency around the world.

Thanks to our principal member in UnionPay, we can offer end-to-end acquiring and processing solutions for U.S. and Canadian merchants looking to expand their business to the Chinese e-commerce market with the acceptance of the UnionPay card online. Our UPOP e-commerce solution provides merchants with easy to implement tools that allow them to reach the 4.2 billion UnionPay debit and credit cardholders. We continue to work closely with UnionPay to fine tune and enhance our UPOP offering to make UnionPay acceptance as ubiquitous for merchants and their customers.

As we survey the global payment industry, we see that Planet Payment is one of the few payment processors that can offer a truly global transaction platform that can be leveraged to deliver solution that meet the specific transaction processing requirements of our customers, no matter where in the world they maybe located.

By a way of example, in Q1 we announced a significant new initiative with Visa to deliver processing solutions to acquirers and merchants in emerging and frontier markets. Visa launched its Accelerated Connection Platform or ACP to deliver superior processing capabilities to acquirers and to provide merchants with access to next-generation payment acceptance technology.

As part of this new initiative, Planet will be enabling a complimentary, backend clearing and reconciliation system for ACP users. This partnership will allow Plant Payment and Visa to deliver full end-to-end processing solution with minimal changes to the bank's existing system.

Our teams are working closely with Visa to complete the necessary technical and operational work in support of this new offering, and we look forward to working with Visa as they rollout the combined solution in target markets across the globe.

Reporting a back-end processing solution in a particular market can be a complex proposition with very specific technical and business requirement. We believe that the flexibility of our platform and our ability to modify our system to accommodate these local nuances was key to Visa's decision to include Planet Payment in this initiative.

Now, let me pass the call to Ray to provide you with some Q1 financial highlights.

Raymond D'Aponte

Thank you, Bob. As Carl mentioned at the start of this call, we're pleased with our performance in the first quarter of 2016.

Total revenue for the quarter increased $1.6 million or 13% to $13.7 million. Multi-currency processing revenue for the quarter increased $1 million or 12% to $8.6 million, for which we earned an average net markup fee on the value of multi-currency transactions processed of 119 basis points, up from 112 basis points a year ago.

The increase in average net markup is a function of customer, product and pricing mix. Overall, we are pleased with the growth in multi-currency processing revenue during the quarter.

In EMEA, we experienced an increase in settled dollar volume processed due to boarding new merchants and activation of new currencies in that region. In the Americas, we also saw an increase in settled dollar volume processed due to new and existing point-of-sale customers, as well as continued rollout of ATMs. In Asia-Pacific, settled dollar volume continues to be impacted by reduced travel to the region, in part, due to the strong U.S. dollar.

Payment processing services revenue increased 30% in the quarter to $5.1 million, while we expanded our payment processing services margins to 47% from 42% a year ago. These positive results are due to increases in UnionPay acquiring volume and transactions being processed with Visa in emerging markets as well as from our focus on delivering profitable solutions to the market.

On a GAAP basis, our net income for the quarter was $1.8 million. Adjusted EBITDA for the quarter increased 15% to $3.2 million. Our Adjusted EBITDA margin for the quarter increased 24% of revenue from 23% a year ago.

Our management relies on certain key performance indicators, such as active merchant locations and settled dollar volume processed to manage and assess our business. These key performance indicators, which are explained in Table 2 of our press release, help us evaluate growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts and assess operational efficiency. We believe that improvements in these metrics will result in improvements in our financial performance overtime.

Our total active merchant locations increased to approximately 135,000 compared to approximately 102,000 from a year ago. As a reminder, the company considers a merchant location to be active as of the date if the merchant complete at least one revenue generating transaction at the location during a 90-day period ending on such day.

Total settled dollar volume processed increased to $2.1 billion. Total settled transactions processed for the year increased to approximately $53 million.

Next, I will update you on our stock repurchase program and the results of the Dutch auction tender offer. Under the stock repurchase program for the period January 1, 2016, through March 31, 2016, we've purchased approximately 1.3 million shares of Planet Payment stock for an aggregate purchase price of $3.6 million.

The total amount of stock purchased since the commencement of the program in October 2014 is 4.9 million shares for an aggregate purchase price of $11.5 million. Our recently completed Dutch auction tender offer resulted in the purchase of 3.9 million shares at an aggregate purchase price of $13.9 million.

In summary, Planet Payment through a combination of its stock repurchase program and its Dutch auction tender offer purchased a total of approximately 8.8 million shares or approximately 50% of its common shares outstanding for a total amount of $25.4 million. These purchases were made approximately using $15.5 million in cash generated through operations and approximately $9.9 million was financed by our credit facility.

Our guidance for the full year 2016 as provided on March 2 remains unchanged except as follows: fully diluted earnings per share is expected to be in the range of $0.15 and $0.17 per share based upon approximately 51.9 million fully diluted common shares outstanding, a change from $0.14 to $0.16 based upon 52.5 million fully diluted common shares outstanding. This change is due to a lower share count as a result of our recent tender offer and the partial conversion of our outstanding preferred shares. Refer to Table 4 in today's press release for further information.

With that, operator, we'd like to open the call to questions. Thank you.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from the line of George Sutton from Craig-Hallum.

George Sutton

So I wanted to focus on the merchant location number, which ramped up quite materially on the multi-currency side. And I understand you've been rolling some new things out, but could you be a little more specific at what caused that big bump?

Raymond D'Aponte

So if you look at where we ended up at the end of the year, we were about 118,000 in total and we ended this year about 135,000 in total. Most of those ads came from Cielo over the past quarter. I think we mentioned, probably at the beginning of 2015 that Cielo started removing some of these merchants to kind of look at their focus and how they were going to re-rollout this program and we started seeing those adds in the quarter.

George Sutton

Just staying on the topic of Cielo, we have the Olympics coming up this summer. Can you just give us a sense of how prepared they are? How this might be a different situation than we saw relative to the World Cup, where I don't think either of you were yet prepared to handle volume?

Carl Williams

We were prepared for the volume. But yes, listen, I think that we've learned a lot and Cielo has learned a lot since the World Cup. And I have to tell you from a standpoint of preparation, I think that both sides are very eager. By the way, I think, its 90-some days away. There's a lot going on in Brazil, politically, and as you probably heard or read, there is still a lot of work being done down there to get the Rio ready for it. But I have to tell you, we're doing great job. Our guys are heading down there next week for most of the week and will be going down there with some frequency between now and the Olympics. And so we're feeling very good about it.

George Sutton

And you mentioned a new offering relative to your Visa relationship. I wondered if you could just go over that a little bit and explain. I think that's a new offering that I'm aware of for you. How much build is involved there? What kind of time frames are we talking about?

Robert Cox

So the build as we laid out in the prepared remarks is largely around the continued exploration of delivering payment acceptance into under-served markets around the world. And in this instance, as it relates to the Accelerated Connection Platform, Planet, is not involved on the authorization side, but it's handling all of the backend and all of the settlement activities for these Visa accounts.

So as it stands today, we are still into very late stages of the build mode and we could expect to see some business in that regard later in this year. We're both out in frankly the frontend, which is obviously, the in-country acquirers. There is some work to be done as well. But I would say, later in the year, we could see some activity from that.

George Sutton

Last question relative to -- you had mentioned in Asia, Asia volumes continue to be impacted in part by the strong dollar. Obviously the dollar has turned and I'm curious at what point we might see rather than a headwind, a bit of a tailwind there in your opinion?

Carl Williams

Well, in my opinion, George, I think that we've started to a little bit of the turn. Its sill early and there is still -- it's not just strong dollar, it's also the Chinese government allowing some of the Chinese nationals to travel a little bit more freely, and of course, that's impacted our business as well.

And then, of course, strengthening in the euro and the strengthening in a couple of other currencies is also very important. But the three of us were just in Asia, not to long ago, and met with most of our large clients there, and I have to tell you people are feeling pretty good about what they think is going to happen for the remainder of this year.

Operator

Our next question comes from the line of Matt Blazei from Lake Street Capital Markets.

Matt Blazei

Couple of questions, just again, going back to Brazil, you had you commented on the progress you are getting in the take rates there with the conversion of the software. Can you give us any update on that?

Carl Williams

As you know, they made a terminal change there towards the end of last year around November of 2015. And we saw a pickup in, what we'll call the opt-in rates at that point. And that number has been fairly steady. And as I said, we're heading down there next week, a bunch of us, and working to make sure that Cielo is doing all it can to continue with training at the point-of-sale and making sure that the merchants understand the value of what DCC offers. So all I could say is the quarter included -- some of the growth in the quarter included what was Cielo. So therefore, we think the opt-in is doing fine.

Matt Blazei

Because I know that even until the conversion, the opt-in rates were still in the low teens versus some of your markets that are close to 50%. Is your goal to get somewhere in between those two numbers by the Olympics?

Carl Williams

Yes. Absolutely.

Matt Blazei

And secondly on this unnamed Latin American partner, can you just give us kind of an idea of the scale possibility? Obviously, Cielo is the largest in Brazil, maybe the largest in South America, I'm not sure. But just give us an idea of what potentially this customer could be for you?

Carl Williams

Matt, we thought that we would be able to tell you more on this call, because we're really close. And you know what, I don't -- listen, it's easy to speculate with respect to some of the countries down there. This is a, what we think, a relatively nice deal for us. And I'm just going to ask you to bear with us until we can get more -- if we can get their authorization to tell you a little bit more about it.

Matt Blazei

And one last question, it looks like you closed the quarter with about $14 million in cash and I know you spend $14 million on the Dutch. Where is your cash balance sitting today?

Raymond D'Aponte

So Matt, it's right. Based on our prepared remarks, we actually financed most of this through our credit facility. So we spent about $4 million in our cash on the Dutch tender offer, so most of it was done through our credit facility.

Matt Blazei

And I would assume that your goal would be to pay that off over the course of the year?

Raymond D'Aponte

We are evaluating it. And we'll look at it every quarter and then make some decisions based on that.

Operator

Our next question comes from the line of Gary Prestopino with Barrington Research.

Gary Prestopino

Lot of questions have been answered, but just looking at your SG&A, it was up pretty dramatically, and I see your stock comp was up fairly dramatically too. I would assume that would be an issue of some one-time equity awards. What kind of run rate is more normalized that you're looking at for stock comp this year?

Raymond D'Aponte

There's two things for the quarter if you're comparing it versus last year. One, just to remind everyone, there was about $0.5 million insurance gain that's driving down the prior year SG&A number. And on top of that was, as you mentioned, the increase in stock comp. Like I said, SG&A and stock comps should look very much the way we ended in 2015, plus or minus 5%. So that run rate should continue.

Gary Prestopino

So the run rate should be plus or minus --

Raymond D'Aponte

Yes. It should be very similar to where we ended up last year.

Gary Prestopino

And then, in terms of Cielo and the rollout of the merchants, are you satisfied at this point that they have hit all of the major merchants in the various cities that could be affected by tourism. I mean I think the goal was to put it out to 1 million, but not 1 million merchants are going to be affected by tourism. At least, I don't think so.

Carl Williams

Actually, Gary, the goal is to get to the 200,000 that were at the highest foreign volume. That was our initial goal. By the way, they would like to get it out to 1 million, and I'm all for that, because I know that even though we know from the [ph] BIN analysis where the foreign volume is, some times it shows up at places that you didn't expect, and therefore you want to make sure it's available. So no, they've done a good job getting to the large merchants and training the large merchants. So from our perspective, it's all going the right way and we think we're going to be in a pretty good shape for the Olympics.

Gary Prestopino

So you think you really are where you should be at least for the Olympic and in the major cities?

Carl Williams

Yes, I do.

Gary Prestopino

Some of these questions have been answered already, but I just noticed that your net markup on MCC was up about 7 basis points and it looks like your take rate on payment processing was up about 6 basis points. Is that a function of the payment processing? Is that a function of where UnionPay revenue? And then on MCC, is that a function of more DCC revenue going through the system, where your markup is going up?

Raymond D'Aponte

The 119 basis points versus the 112 basis points, a lot of that has to do with kind of the pro rata share of ATM volume that we're driving. We saw a nice increase versus the same quarter last year. So that's where a lot of that increase is coming through. I didn't catch your other question though?

Gary Prestopino

On the payment processing volume, it looks like relative to your settled dollar volume processed your revenues -- I take revenues over settled dollar volume like 0.37%. It looks like it was up 6 basis points, and I'm just wondering, is that because you're driving more your UnionPay business [multiple speakers]?

Raymond D'Aponte

That's correct.

Gary Prestopino

And then, in terms of this new agreement with Visa, have they given you somewhat of a cadence of how many countries they want to roll this to and over what time period that you can share with us anyway?

Raymond D'Aponte

It's little early to share, Gary. We don't want to get out in front of them too much, but they have given us ideas of where they'd like to go first, and what we can say is, for us and for them, there are markets with good opportunity for expansion of card acceptance, and stay tuned, if you will, for the exact markets. Like I said, we just can't get out in front of them as far as the news.

Gary Prestopino

And then lastly, with your agreement to expand with Global Payments, you're doing it in Canada, right?

Raymond D'Aponte

Right.

Gary Prestopino

In other countries in Europe, when can we start expecting some work on that? I know they have to have some contracts that also end. But when do you start seeing that you're going to actually start work with them to go out into various European countries?

Raymond D'Aponte

Gary, so we're working on that almost everyday with them. We're working very closely with Global on their markets that are non-Asia Pacific or non-U.S. And we're hoping, we're very hopeful that we're able to get to see some revenue towards the end of this year in some of these new markets with these guys.

Operator

Our next question comes from the line of Michael Grondahl from Northland Securities.

Michael Grondahl

Bob, I think you talked about a couple opportunities that you're working on, the multi-currency large e-commerce deal in EMEA; some DCC ATM deals, one in Mexico, one in the US; and then some Pay in Your Currency deals in EMEA, U.S. and Asia. Could you kind of just size those deals for us that you're looking at?

Robert Cox

So there are any number of things -- and one thing as it relates to, we have talked at length about ATM and about the demand that we're beginning to see from providers. Now, you may recall, we started this business in the Americas, predominantly in the U.S. And look, in the early days it was tough to go to a bank without a whole lot of activity out in the market and say this was a great idea.

But fact of the matter is that a number of them have seen what's going on in the market. They've seen what their competitors are doing and they've begun to get very interested. So the sales process has become a lot easier, I would say. Although, the guys would tell me, it's still not easy. But the fact of the matter is that the interest levels have gone up substantially.

By the way, we're hoping and we believe that the interest levels in both EMEA and Asia Pacific will go up as well as we've just launched initiatives there with ATM player. And so to date, on the point-of-sale side, there's a lot of opportunity in the U.S. And we're not doing as much business in the U.S. as we're doing in the rest of the world.

So right here in our backyard, we're working hard to make sure that providers are aware of just how big the opportunity is for them. And look, we're hoping that we're able to talk about someone making the choice to proceed with Pay in Your Currency this year, right here in our backyard, so we're working hard on it, but there is a lot of interest and that's the good news.

End of Q&A

Operator

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time. And have a wonderful day.