SmartPay will be eliminating about 40 jobs, as it will outsource the manufacture of EFTPOS terminals. It is a merchant payment services company that acquired assets from its failed competitor ProvencoCadmus.

When the company acquired the Provenco assets last August, it gained a unit assembling terminals at its Glenfield site in Auckland, which used printed circuit boards sourced from third parties. Overhead savings of more than 20% are expected if the changes took place, according to Managing Director Ian Bailey.

Bailey shared that being a manufacturer, one has a lot of working capital tied up and that the company builds software and it doesn't really fit their core business.

The outsourcing move will lift profits in following years. The company plans to localize sales and support capability throughout New Zealand.

Bailey said, "The decision to move to an outsourced production model will release additional working capital, reduce the need to hold components, reduce overall inventory and provide a single point of responsibility for production and product delivery".

He shared further that EFTPOS terminals are becoming increasingly commoditized, which needs high levels of security and certification to meet international standards.