Novatti Group Limited (ASX: NOV) announced that it has entered in a sale agreement with Slice Payments (Australia) Pty Ltd (“Slice Payments”) to provide a “Buy Now Pay Later” SAAS solution in the United Kingdom.
The Novatti Payments Platform has been customised to deliver an end-to-end Buy Now Pay Later SAAS solution for Slice Payments. The company is expected to become a circa 15% shareholder in Slice Payments in consideration for providing the solution. It will recognise revenue of $300k in FY19. NOV will then be paid transaction fees for the on-going provision of the SAAS. Such transactions fees will be dependent on the take-up of the service.
Company’s CEO, Peter Cook, stated that the “Buy Now Pay Later” consumer segment has been strongly validated in Australia. Novatti is pleased that it could quickly customise the core fintech platform to provide solution for the customer to quickly launch in the UK. The company and its shareholders will benefit from a successful launch and execution by Slice Payments by both a capital return and growth in on-going transaction processing revenues.
In another update, Novatti presented its operational highlights at Fin News Network Investor Seminar Sydney. The company has access to megatrends, which comprises digital banking, new services, lower cost of operations, regulatory change, global banking needs, and servicing migrants. Under the established market trends, it comprises digital banks achieving high market valuations, numerous success stories, supportive regulation, leveraging new technology, and mobile first, digital, low cost of operations. Its Bank Revenue Streams includes transaction accounts, lending, correspondent banking, and remittances and payments. The group has a huge focus on the aspirational migrant market, as around 160,000 new migrants have been reported each year. There are currently 7 million migrants in Australia, which send around $9 billion per year to their native countries, out of which around $7 billion is sent to China and India.
NOV reported its growing pool of customers, including China Payments, where around $696,000 worth transactions were processed in February 2019. The group has secured a partnership with WeChat Pay and AliPay. With Flexewallet, transactions of more than $100k were processed in February 2019. The company has secured partnerships with more than twenty B2B partners. With Vasco Pay, its target market comprised of international students, where around 15,000 prepaid cards were processed.
The company finds huge investment opportunities in its existing fintech business with revenue growth to build its customer base. NOV will be ensuring strong compliance experience to its customers through further investments in its proven, robust and financial technology. The company’s restricted ADI application is underway.
On the stock information front, at market close on 16th April 2019, the stock of Novatti Group was trading at $0.26, up 8.333% with a market capitalisation of ~$40.05 million. Today, it touched day’s high at $0.31 and day’s low at $0.245, with a daily volume of 703,058. Its 52 weeks high was at $0.37 and 52 weeks low at $0.15, with an average volume of 103,555. Its absolute return for one year, six months and three months are -17.24%, 20%, and 37.14%, respectively.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.