Brisbane, Australia–(BUSINESS WIRE)–EML Payments Limited (ASX:EML) (“EML”) is delighted to announce that it has entered the employee benefits market (“EBM”) in Europe, covering meal vouchers and employee benefits solutions, initially via a multi-year agreement with Up Spain.

Globally, EBM is worth over A$88 billion¹ and is expected to grow by AU$20 billion between 2021 and 2025². Europe represents 35%³ of this market, more than 30 billion Australian dollars per year, making it one of the largest prepaid vertical markets in Europe. Up Spain is one of the three largest providers in Spain, with over one million users across approximately 4,700 corporate clients and a network of over 30,000 restaurants in Spain.

Agreement with Up Spain provides EML with a platform to showcase its proprietary technology enabling real-time benefits and payments with a single transaction, access to multiple accounts and background data to orchestrate a seamless user experience . EML will work to make this contract the basis for the potential future growth of this segment in Spain and in the medium term in countries outside Spain.

Up Spain is a subsidiary of the Up group, which offers social benefits and incentive programs in 28 countries, including Spain, Portugal, France, Germany, Belgium, Italy, Greece, Poland, the Czech Republic, Hungary, Bulgaria, Romania, Serbia, Bosnia and Herzegovina, Slovakia, Moldova, Georgia and Turkey, and 10 countries in America and Africa.

“This contract with Up Spain is a landmark agreement for us given the size of EBM and the continued transition of meal voucher programs from physical vouchers to digital payment solutions. Up Spain is a recognized market leader and we look forward to launching this program with them and continuing to build our presence in the EBM industry, following the success we have had with Salary Packaging solutions in Australia and the opportunities we target in the evolution of the industry of access to earned wages,” noted Tom Cregan, Managing Director and Group CEO at EML.

The program is expected to go live in Q1FY23. EML did not provide financial guidance for FY23, but in light of EML’s FY22 revenue guidance range of AU$230 million to AU$250 million and FY22 EBITDA guidance range of $58 million to $65 million, we do not expect the program with Up Spain to make a material contribution to EML Group revenue or EBITDA during FY23. However, this gain validates EML’s strategy to focus on this segment and provides an opportunity for significant future growth.

The EBM ecosystem at a glance:

• Meal vouchers have become a common part of employee benefit programs, reaching a global market of €59 billion (A$88 billion) each year;

• Restaurant vouchers include physical programs and the digitization of these physical vouchers offers a better user experience with reinforced controls and reconciliation processes;

• The EBM market is expected to grow by approximately US$14 billion (AUD$20 billion) globally during the period 2021-2025;

• By 2025, EBM is estimated to accelerate at a CAGR of nearly 4%;

• 33% of market growth expected to come from Europe by 2025;

• France, Italy and Spain are the largest countries for EBM solutions in Europe;

• The market is concentrated due to the presence of several major players;

• The tax advantage of restaurant vouchers is one of the main reasons expected to boost the growth of the market for meal vouchers and employee benefit solutions in the next 5 years;

• Changing consumer shopping habits, such as the growing preference for online payments and digital payment methods, are expected to facilitate the growth of EBM in Europe by 2025.

About Up Spain

Up Spain (a subsidiary of the Up group) is one of the three largest providers of innovative solutions enabling employees to benefit from benefits and tax incentives on meals and travel with a network of more than 30,000 restaurants alone. ‘in Spain. It began its operations in 1988 with the Check Gourmet solution. Currently, it has more than 4,700 customers nationwide, with more than 1,000,000 users of its solutions in terms of benefits, incentives, management and social. Following the acquisition of Grass Roots in May 2018, Up Spain has extended its portfolio of services to engagement, communication, incentive and recognition solutions. The Up Gourmet Pay app is Up Spain’s mobile solution developed to improve the user experience when paying in restaurants.

For more information: www.up-spain.com

About Up Group

Up Group is the market leader in creating payment solutions and social and local utility services that give businesses and local communities the purchasing power and ability to help employees and citizens everywhere the most of their money. The Group has 3,541 employees worldwide and achieved a turnover of 535 million euros in 2020. Up Group is currently present in Spain, Portugal, France, Germany, Belgium, Italy, Greece, Poland, Czech Republic, Hungary, Bulgaria, Romania, Serbia and Bosnia. Herzegovina, Slovakia, Moldova, Georgia, Turkey, Morocco, Tunisia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama and Peru. Its best-known brands are the UpDéjeuner Restaurant Voucher, UpCadhoc Gift Vouchers, the Reading Check and the Culture Check. The cooperative owns the Kalidea brand, which develops ticketing and management platforms for municipalities. True to its cooperative model, Up contributes to a more sustainable society that places people at the heart of the economy. www.up.coop

About EML Payments

EML provides a platform for innovative payment solutions, helping businesses around the world create exceptional customer experiences. Wherever money is in motion, our agile technology can power the payment process, so money can be transferred quickly, easily and securely. We offer industry-leading program management and highly skilled payments expertise to create feature-rich, customizable solutions for businesses, brands and their customers.

Come discover the many opportunities our platform has to offer by visiting us at: EMLPayments.com

¹ https://cordis.europa.eu/project/id/736302 published on June 24, 2019 – Exchange rate: 1EUR = 1.50AUD

² https://newsroom.technavio.com/news/meal-vouchers-and-employee-benefit-solutions-market – published on January 4, 2022 – Exchange rate: 1USD = 1.39AUD (15/3/22)

³ https://www.prnewswire.com/news-releases/meal-vouchers-and-employee-benefit-solutions-market-to-grow-by–14-64-bn-in-2021–industry-analysis- market-trends-growth-opportunities-and-forecast-2025–17000-technavio-reports-301273767.html – published on April 21, 2021