With increasing usage of digital payments as the preferred method of trade rising around the world, fintech and payment services provider Novatti Group (ASX: NOV) has delivered a 7th consecutive Quarter of record revenues, today reporting $3.79m for the December Quarter.
The revenue increase represents a 52% increase on the corresponding Quarter last year and is generated from a range of billing automation, cross-border payments and card issuing services offered by Novatti.
“The strong results from the December quarter highlight the rewards for Novatti’s strategy over the past years to invest in building and acquiring platforms that can scale to meet growing demand,” said Novatti Managing Director, Peter Cook.
“These results also highlight Novatti’s record of delivering consistent, long term revenue growth.”
The December quarter saw notable activity from Novatti’s card issuing services where they issue prepaid Visa cards in Australia and New Zealand. Through strategic partnerships, Novatti-issued cards can now be integrated with Apple Pay, Google Pay and Samsung Pay for mobile payments from smart devices with the division generating $190,000 with more cards being issued as people around the world seek alternatives to cash for their online transactions.
This was further driven by the launch of their Digital Payments Accelerator which offers SME partners a platform to white-label their own Visa cards. Within weeks of launching, Novatti had signed three partners to the platform with one ordering 50,000 Visa cards
“Backed by strong and growing macro-level demand for digital services, with the existing platforms built and acquired over the past years, and with more than $9m in cash available, Novatti will continue to accelerate its growth strategy in 2021 and rapidly scale its platforms,” added Cook.
While Novatti has increased its operations in New Zealand having secured regulatory approval for ‘issuing and managing means of payment’, the United States is a major focus flagged by Novatti in 2021 for its billing automation software, Emersion.
As a consequential effect of the COVID-19 pandemic, many businesses have been forced to shift their business operations entirely online. For those which had manually completed standard tasks like invoicing and cash handling, Emersion has provided a seamless transition to online billing automation and digital payment collection.
Since being acquired by Novatti in April 2020, Emersion has been signing an average of five new customers per month under subscription software licences which is a notable increase from the two per month prior to acquisition. Recently, Novatti has invested in resources to expand Emersion to the United States which looms as a hugely lucrative opportunity for billing automation software given only 32% of invoices are sent electronically in the US compared to 84% in Australia.
Novatti anticipates Emersion to be live in the US by the end of March.
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