FlexiRoam partners with major Australian bank for global data roaming benefit

FlexiRoam (ASX: FRX) has secured a major deal with one of Australia’s four largest banks, adding its global data roaming service as a complimentary benefit for premium rewards credit cards. The partnership, facilitated through Mastercard, allows eligible cardholders to claim 3 gigabytes of global data roaming annually, valid for 15 days across more than 150 countries. Cardholders also receive a 20% discount on additional FlexiRoam data plans once the complimentary benefit expires.

The agreement, which has no fixed term or minimum commitment, is expected to generate approximately $200,000 in annual fee revenue for FlexiRoam. The revenue projection is based on the number of eligible cards and the applicable annual fee per card, excluding potential revenue from further data purchases or additional benefits.

FlexiRoam executive director Jefrey Ong highlighted the significance of the deal, stating that it validates the company’s model and demonstrates its ability to deliver recurring domestic revenue. The partnership aligns with FlexiRoam’s goal of converting agreements into deployed recurring revenue, as outlined in its annual report for the 2027 financial year.

The deal comes amid a structural shift in the Australian credit card market following the Reserve Bank of Australia’s reduction of interchange fee caps. The RBA’s reforms, which took effect earlier this month, are expected to reduce issuer interchange revenues by approximately $660 million annually. FlexiRoam believes this change will drive demand for cost-efficient benefits like travel data, which can save travelers money.