Finance company FlexiGroup is gearing up for a cashless future, eyeing profits in burgeoning electronic wallet technology.
Chief executive Tarek Robbiati said it was an essential part of the company's future strategy, after it reaffirmed its full year guidance following an 11 per cent lift in its first half profit.
All of the group's five divisions - which include business and individual equipment rental, lay-by plans and credit card finance - recorded growth in profits for the first time in more than two years.
FlexiGroup plans to accelerate these in the second half of the financial year.
To do this, it's investing to meet the demands of a new generation of consumers that want to pay for things with their smartphones - at all hours of the day.
Mr Robbiati said it will be part of a major shift in Australia's $50 billion consumer payments industry.
"Over time we'll see bank notes and coins literally disappearing. Digital payment systems will overtake them," he said.
And he insists FlexiGroup won't be pitted against big players like Apple Pay, Apple's own virtual wallet service due to roll out in Australia this year.
"We don't necessarily see it as a threat," he said.
"It encourages consumers to shift their behaviour to the technology we have. In fact it reinforces what we do."
Mr Robbiati confirmed full year 2015 guidance for a cash net profit of between $90 million and $91 million, up from $85 million a year ago.
Flexigroup stocks spiked almost 15 per cent with the news, with a 45 cent rise to $3.49 on Thursday afternoon.
FLEXIGROUP IN THE BLACK
* Half year net profit of $38.5m, up 11 pct from $34.6m in 2013/14
* Total portfolio income of $164.4m, up 9 pct from $151.5m
* Fully franked interim dividend of 8.75 cents per share, up from 8 cents
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