Within one year of acquiring billing automation business Emersion, digital payments and fintech specialists Novatti Group (ASX: NOV) have launched the software in the United States as part of their international expansion plans to capitalise on burgeoning demand for payments automation.
The launch replicates Emersion’s existing Software-as-a-Service business model which has proven hugely successful in the Southern Hemisphere and delivered continuous revenue growth since being acquired in April 2020.
“Emersion’s customer base across Australia, New Zealand and Singapore provides a solid foundation to continue its international expansion, starting with this launch in the US,” said Novatti Managing Director, Peter Cook.
“Emersion’s launch in the US comes ahead of significant growth forecast for its key market segments in the coming years. This presents a great opportunity for Novatti, with Emersion’s full SaaS platform expected to deliver high-margin, recurring revenues with each new client.”
The US provides a particularly attractive market for Novatti to expand Emersion services given the US accounts payable automation market is expected to grow more than 110% between 2019 and 2025, to USD $4 billion.
Much of this growth has been brought upon by the COVID-19 pandemic where city-wide lockdowns forced many businesses to digitise their operations, which included billing and payment collection.
As a full-service platform, Emersion enables businesses to automate their billing processes, collect digital payments and embed payment options into websites, emails and instant messaging. Through this integration with Novatti’s international payments infrastructure, business users are able to be paid quicker by clients while significantly reducing labour linked to invoicing, data entry, reporting and cash flow management.
Prior to their launch in the US, Emersion has been signing an average of five new enterprise customers every month, delivering more than $550,000 in revenue for the Quarter ended 31 December 2020.
Novatti is yet to reveal the full extent of their US-based sales force, however the Emersion platform is now available on global business app marketplace, Salesforce AppExchange and ConnectWise Marketplace.
One of the biggest barriers to entry for billing automation software in the US is the differing tax rates between each State but functionality has now been fully integrated for businesses to operate nation-wide using the Emersion platform.
The expansion of Emersion into the US continues a strong run of international initiatives being led by Novatti which recently received regulatory approval to issue Visa cards in New Zealand which are also integrated with Apple Pay, Samsung Pay and Google Pay for touch payments.
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