Prepaid software developer VendTek Systems Inc. (TSX-V:VSI) is making major moves in Brazil.
On Monday, the company’s subsidiary Now Prepay Servicos de Informatica Ltda. signed a national distribution agreement with Brazilian telecom giant Embratel.
The agreement allows VendTek to distribute prepaid landline vouchers.
The Vancouver-based company specializes in automated transaction system software, which allows customers to buy prepaid products from self-serve terminals that are connected to a central server.
The company said its system reduces shrinkage and inventory requirements for vendors and improves access to prepaid products by eliminating physical cards and vouchers.
The news is the third such announcement VendTek has struck in Brazil since December.
VendTek plans to significantly expand its footprint in Brazil this year, broadening its presence in the prepaid mobile phone and landline markets.
The company’s shares were down 3.7% to $0.52 at midday trades Monday.