On Track Expands its Cashless Payment Solutions to Japan

On Track Innovations (NASDAQ:OTIV) announced on Thursday (June 28) that it received a purchase order from Japan, further expanding its reach in cashless payment solutions.

The company said that the order was for 3,000 cashless payment systems that came through its partner, Billing Systems (TSEL:3623).

On Track Innovations (OTI) did not disclose the terms of the contracts but said it will recognize a one-time sale, which OTI estimates will result in high levels of profit in the long-term.

“At an estimated six million units, the total estimated size of the Japanese electronic vending machine market is significant, leaving us a substantial runway to continue to execute with our partner, Billing Systems Cooperation,” Shlomi Cohen said in a press release.

The order which was for OTI’s turnkey solution consists of the company’s new EMV and FeliCa based contactless reader, called UNO Plus, along with OTI’s cashless payment gateway system, GoBox.

Following the delivery of this purchase order, which the company expects to happen in the third quarter of 2018, OTI will have delivered a total of 10,000 advanced payment systems to Japan.

The company has been targeting long-term revenue stream as seen from an announcement earlier in June where OTI announced a four year contract at an estimated value of US$155,000 with Mazowieckie Railways Company, a Poland-based railway service.

“This multi-year service contract stands as a testament to our continued efforts to build a steady base of long-term recurring revenues, which we believe will be a notable long-term value driver for our shareholders,” Cohen said in the release.

The contract in June followed the announcement in May where the company reported a one year ticketing contract worth US$500,000 with Mazowieckie Railways.

Following the announcement on Thursday, shares of OTI were up 2.22 percent over the one day trading period with OTI closing the trading session at US$1.16.

TipRanks has a moderate buy on the stock with a target price of US$2.25 based on a report from Lake Street analyst Jaeson Schmidt. However, TradingView has a sell ranking on the stock with 13 verticals against, 10 in neutral and three in favour.

Shares of Billing Systems Corporation were up 3.44 percent with the stock closing at JPY 6,010 on Tokyo Stock Exchange. TradingView has a buy ranking on the stock with 15 verticals in favour, 10 in neutral and one against.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.