About West

West supplies smart transaction and payment solutions that help the company’s customers to rationalise trade in physical environments. Customers comprise systems integrators, distributors and end customers in the retail and visitor sectors. West was founded in 1988 and has been listed on Nasdaq OMX First North since 2007. The head office is in Upplands Väsby, where around 20 employees work in the areas of sales, project management, development, purchasing, warehouse and service.

West’s business focuses on three clearly defined product areas:

Card Terminals

West provides the infrastructure for the payment methods demanded by the market in the form of reliable card terminal solutions. These are certified to meet the card industry’s highest security requirements and are prepared for the mobile card payments of the future.

Self Service

Standardised self-service solutions for smart payment and transaction applications, as well as solutions for enhanced security and efficiency in handling cash.

Cash Register Systems

Equipment and services for cash register and payment systems.

From the CEO

sten-karlsson

Usually, the third quarter is the weakest period of the year. But things are different this time! With revenues totalling almost SEK 23 million, the result for the third quarter is up 32% on the same period last year. It is actually better than any quarter in 2016. The gross margin for the first nine months of the year is a robust 58%, which naturally goes a long way to explaining why operating profits are up 240% for the same period. The growth West is currently enjoying comes as no surprise: the foundations have been laid over a period of years, distinguished by targeted technology investments and intensive business exploration.

Our input in the area of new markets is an excellent example of this. In Sri Lanka, Commercial Bank, the country’s largest bank, is currently busy delivering payment terminals to merchants. Companies active in widely different sectors are now using West payment terminals to handle payments in shops, hospitals, pharmacies, hotels and restaurants, for instance. This has been made possible by comprehensive work to obtain approval from both local and international certifying bodies. In the immediate future, another of the biggest banks in Sri Lanka will commence deliveries of our payment terminals to its customers, which will naturally increase the pace of the roll-out. It is pleasing to see that reactions from customers are extremely positive.

A similar situation is playing out in South Africa. Certifications with regard to the South African bank network and card schemes were completed during the autumn. Our customer V-Switch, has now teamed up with Standard Bank to deliver West payment terminals to the first users.

A prerequisite for the deal in South Africa was the implementation of our own payment gateway. This allows West itself taking on a larger part of the work to process card payments, which reduces dependence on external partners. Therefore it was a real milestone for us that our payment gateway was certified during the quarter at the highest security level of the PCI DSS standard.

Having the payment gateway in place also cuts down lead times and simplifies the process for launching on new markets. We are therefore in a position to continue our internationalisation process according to plan, and can now offer our customers a particularly well-functioning payment terminal solution on two new markets. The first payment terminals recently went live in the Buttericks store in Copenhagen, and at the new Max Burgers restaurant that has just opened in Poland.

For Max, the success with their self service concept continues – not only increasing revenues, but also saving time and money for both guests and the restaurant itself. We at West are proud of the ongoing working relationship with Max, and we are looking forward to continuing the journey in 2018.

After a protracted wait, the Nordics has finally caught up with the future – much to the delight of West. I am, of course, referring to Apple Pay. Their competitor – Samsung Pay – has been in place for a while, so users can now have digital cards issued directly to their smartphones, which means they no longer have to carry plastic cards with them. The payment terminal reads the card data contactless – using what is known as NFC technology – directly from the phone or any other unit where the information is stored. West has long since viewed this as obvious technological development, and a move that is positive for our business, because we provide full support for contactless payments in all our offerings. Contactless payments is one of the key driving forces behind the global payment terminal market over the coming years, and use is rising sharply in many countries.

So it is with both excitement and optimism that I am looking towards the final quarter of this year – and the whole of next year. We have a number of very interesting business cooperations in the pipeline. Before and during 2018, we will be intensifying our technology investments as to ensure we can accommodate new customer demands, and deal with payments from an even broader perspective. My outlook for 2017 remains, where we will continue to grow with profitability, and we are well equipped for future expansion.

 

Sten Karlsson, CEO of West International AB

 

 

The market

The market for card terminals in the Nordic region and large parts of Europe is characterized by a complex industrial structure, high barriers to entry and a small number of operators. Once a company is established, however, there are benefits in the form of long customer contracts and slightly less competition than in many other sectors.

There are approx. 220,000 terminals in operation in Sweden. The corresponding figures for Finland and Norway are approx. 200,000 and 150,000 respectively. About half of the terminals in Sweden are independent, while the rest are integrated with the cash register system.

There are estimated annual sales of approx. 50,000 card terminals in Sweden, representing approx. SEK 500 million at the end customer level. The corresponding values are 45,000 terminals in Finland (value SEK 450 million) and 40,000 terminals in Norway (value SEK 400 million).

At present there are an estimated 250,000 cash register locations in Sweden, including the very smallest sales outlets that do not currently have a certified cash register. Since the turn of the year, the law has been tightened and now also includes, for example, traders in squares and markets, which increases the need to supplement the cash register with a control unit and a card terminal.

New, alternative payment solutions, e.g. when the mobile phone is used for payment, have recently been attracting a lot of attention, although as yet there are only a small number of users. Reasons for this include a lack of clarity about added value for the consumer combined with the difficulty of changing user behaviour.

Work for us

West is a good employer, where the focus is on the workforce. Work at West is characterised by entrepreneurship and team spirit.
We are always interested in hearing from those who have the right competence and the desire to work for us. Please submit an expression of interest together with your CV by email to: 
info@westint.se

We will respond to your expression of interest as soon as we can.

Contact us

WEST INTERNATIONAL AB (publ)

Head office

Kanalvägen 14, 2tr, 194 61 Upplands Väsby Sweden

Phone: +46 (0)8 470 03 00
Fax: +46 (0)8 506 68 499
Email: info@westint.se

Goods inward

Kanalvägen 2, 194 61 Upplands Väsby Sweden

Email: logistics@westint.se

Service & Support

Email: services@westint.se