Fintech developer and transactions processor Novatti (ASX: NOV) has reported record payment processing revenues for the quarter ending December 31, 2019, a rise of 45% compared to the corresponding 2018 quarter.
The increase from $1.15m to $1.55m comes solely from Novatti’s international transaction processing business, just one division of the Company which has a banking licence application pending and expected to be granted in early 2020.
“Growing Novatti’s core transaction processing business remains a key focus for our team and we expect strong revenue growth to continue here in FY20,” said Novatti CEO, Peter Cook.
“From a strategic point of view, this is welcomed, as we believe many of Novatti’s existing transaction processing customers will be primary customers for future banking services, aiding broader growth for the company.”
The significant growth in their payment processing business continues a strong 6 months for Novatti which last week reported that strategic investors had committed $18m in their banking service subsidiary, enabling the Novatti to meet the Tier 1 capital requirements for the licence and working capital without any further funding required.
Upon granting of the licence, Novatti intends to launch a digital banking service which will target migrant populations and leverage existing fintech infrastructure Novatti has developed.
With its growth in payment processing revenue, the Company has reported consecutive cash flow positive quarters in Q419 and Q120. Novatti is expected to release Q220 figures next week.
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