What is the timeline and scale for rolling out XRP payment solutions, and how could it affect the company's cost structure and profitability?

Timeline & Scale

Webus’ partnership with Air China creates a ready‑made user base of > 60 million PhoenixMiles members that can be tapped for the upcoming XRP‑based payment layer. While the press release does not spell out a hard date, the language (“introducing future XRP payment solutions”) combined with the airline’s global reach suggests a phased rollout: a pilot phase with select routes and premium‑chauffeur services in the next 3‑6 months, followed by a full‑scale deployment across all Air China markets within 12‑18 months. The sheer size of the member pool means the solution is being designed for mass‑adoption rather than a niche offering.

Impact on Cost Structure & Profitability

Adopting XRP eliminates traditional card‑network interchange fees (typically 1‑3 % per transaction) and reduces settlement latency and charge‑back expenses. For a company whose core service—high‑margin chauffeur rides—relies on fast, low‑cost payments, the gross‑margin uplift could be 1‑2 percentage points, directly expanding EBITDA. Moreover, blockchain‑enabled reconciliation can cut back‑office processing time and staffing costs, further compressing SG&A. The upside is tempered by short‑term integration outlays (API development, compliance, and staff training), but these are expected to be recouped within the first year of the rollout given the scale of the user base.

Trading Implications

The partnership unlocks a large, liquid user network and a cost‑saving payment technology—both strong fundamentals that can upgrade Webus’ profit outlook. Assuming the rollout proceeds on schedule, analysts could model a 10‑15 % earnings uplift in FY‑26, prompting an upward revision of target prices. From a technical perspective, Webus has recently broken a key resistance level around $3.50, and the catalyst could sustain a rally toward $4.00–$4.20. Traders may consider a buy‑on‑dip position now, with a stop just below the broken trendline (~$3.30), to capture upside from the anticipated margin expansion and revenue lift driven by the XRP solution.