Thriving in a world where cash is becoming less relevant by the day, Australian fintech company Novatti Group (ASX: NOV) has continued leveraging their digital payment capabilities to report their highest ever quarterly revenue with further international expansion firmly in their sights.
With an increase in digital payments being made around the world, Novatti has processed more than $2.3 billion of annualised gross transactionswhich is up from their previously reported annual figure of $2b. Alongside the rise, the Company has reported a 16% rise in revenue to $3.56 million for the quarter ending 30 September 2020 which also represents their highest ever quarterly revenue.
The strong revenue figures also have Novatti positioned for an inflection point towards profitability, delivering $101k normalised EBITDA for the quarter which has been driven by a combination of their Visa card issuing capabilities and business automation division Emersion which is set to expand to the United States.
“With the strong push to digital services following COVID-19, $11m cash available, and the support of our tier-one partners including Visa, now is the time to rapidly accelerate our growth and international expansion, starting with the US,” said Novatti Managing Director, Peter Cook.
Being one of the rare beneficiaries of pandemic-enforced lockdowns, Emersion has seen an uptake in business clients over the past few months that have engaged the Emersion platform for their billing and automation technology. This was reflected in Emersion’s September quarter revenue of 525k and has the division on track for more than $2.1m annual revenue which is comfortably higher than the $1.7m generated when acquired by Novatti in April 2020.
In preparation for further growth across their issuing, billing and cross-border payment divisions, Novatti has been actively increasing internal resources with 12 new hires in the past two months which includes the addition of Kian Jackson as General Manager of Acquiring. Jackson previously held the role of General Manager of SecurePay, a leading Australian payment gateway owned by Australia Post and used by more than 90,000 Australian businesses.
Holding a Visa Principal Issuer license, Novatti has also seen an uptick in business from their issuing division which partners with business, enabling them to issue Visa credit cards as a ‘Bank in a box’ payments solution.
Combining all of their digital payment capabilities, Novatti currently has a banking licence application being reviewed by the Australian Prudential Regulation Authority (APRA) which has flagged March 2021 as a resumption date for the issuing of new licences as part of Novatti’s plans to launch a neobank.
*Owners of this website are NOV shareholders
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