Australian prepaid payments services company EML Payments is to create 20 jobs at its technology and innovation hub in Galway.

The initiative is being part-funded by taxpayers through state aid paid by IDA Ireland.

EML provides prepaid payment services in Australia, Europe and North America, issuing mobile, virtual and physical card solutions for pay-outs, gifts, incentives and rewards, as well as supplier payments.

In July 2018 EML bought a majority stake in prepaid debit card firm PerfectCard, an Irish company founded in 2006 and only one of two companies to hold an Irish e-money licence from the Central bank.

EML chief executive Tom Cregan said: “Having an Irish e-money licence allows EML to self-issue regulated payment products across the European Union without the need for external third-party Bank Identification Number sponsors, which provides our customers with greater regulatory certainty.

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"The acquisition also expands our product capability, enabling EML to become an issuer, payment processor and program manager across the European Union. PerfectCard provides EML with an excellent corporate expense and corporate incentive solution that we can grow in our existing geographies.”

EML Payments’ acquisition of 75% of PerfectCard involved a total maximum acquisition price of €6m. The upfront cash payment was €2.7m, and €250,000 on completion of warranties. This was to be followed by a two-year earn-out, based on 10x average operating profit, generated in 2019 and 2020, capped at €3,050,000. The earn-out is payable 82% in cash and 18% in EML shares.

PerfectCard was founded in Kilcoole, Co Wicklow, by Nikki Evans (pictured above with minister Ciaran Cannon). After persuading Mastercard to cooperate, Evans fixed up Dundrum Town Centre with a gift card that could be used in all the shops. From there the company branched into servicing other retailers and developing generic gift cards that companies can use for employee rewards, as well as company expense tools.

At the time of the purchase by EML, four members of the Evans family spoke for the 75% of the PerfectCard shares, with Wilson Evans the largest shareholder (35%).

The company became Ireland’s first authorised e-money institution in 2015 and in 2017 booked a pretax profit of €1.5m on turnover of €3.3m. The Galway office was initially set up by PerfectCard.

EML Payments is based in Brisbane, has a market cap of €250m and operates in 21 countries. The company processed more than €4.2bn worth of payments in 2017.

Photo: Tom Cregan with IDA Ireland's Mary Buckley