5 FinTech Heroes: SPT, PPS, EML, APT and FXL

  • Dec 12, 2019 AEDT
  • Team Kalkine
5 FinTech Heroes: SPT, PPS, EML, APT and FXL
As the world is transitioning into a tech-savvy environment, Financial technology (Fintech) companies are getting increasingly important for a country’s economy. In many countries, Fintech companies are providing innovation, employment, and are contributing largely to the nations’ GDP. In Australia, due to steady regulatory and low-risk environment, many Fintech companies are flourishing at an increasing pace. We have made a list of ASX-listed five fintech stocks with strong operations. Afterpay Limited (ASX: APT) Whenever there is a discussion about fintech stocks of Australia, one stock that can’t go un-mentioned is Afterpay Limited (previously known as Afterpay Touch Group Limited). This Buy Now Pay Later (BNPL) stock has almost tripled its shareholders’ wealth in the last one year. Last month, the company achieved $1.0 billion of monthly underlying sales, which is the highest ever monthly performance of the company since its inception. November Months Performance (Source: Company Reports) At the end of November 2019, the company had over 6.6 million active customers. Both, Black Friday (on 29 November 2019) and Cyber Monday (on 2 December 2019) were record trading days for the company. In FY2020, the company is focusing on the following key areas:
  • Merchants
  • Customers
  • Platform + Partnerships
  • Performance
  • Capability
By AEST 3:23 PM, APT stock was trading at a market price of $28.870. Splitit Payments Ltd (ASX: SPT) Leading payment solutions provider, Splitit Payments Ltd (ASX: SPT)) witnessed an uplift of 3.906% in its share price during intraday trade today (AEST: 3:23 PM), on the back of the news regarding its strong performance over the important Black Friday and Cyber Monday holiday period. The company reported record underlying sales over the important Black Friday and Cyber Monday holiday period. Notably, the company witnessed 83% growth in key US market. SPT made excellent progress across its key markets and continues to execute on its growth plans, adding new partners and merchants. Over the four-day trading period incorporating Black Friday and Cyber Monday, the company recorded USD 3 million in underlying merchant sales processed on its platform. Recently the company also announced new strategic partnerships with Magento, iPay88 as well as BlueSnap. Splitit has continued to grow its merchant network through new agreements with multiple brands across different consumer verticals in North America, Asia Pacific (APAC) and Europe, Middle East and Africa (EMEA), including:
  • ReST - #1 smart bed in Editor’s Picks in the upcoming Sleep Retailer Magazine (North America)
  • Plus Shop - leading reseller of hype footwear and apparel (North America)
  • Slabway - online retailer of luxury massage chairs (North America)
  • Yoga International - one of the world’s largest online yoga platforms servicing 500,000 users in 150 countries
  • Dick Smith - one of Australia's most recognisable electronic retail brands (APAC)
  • Reds Baby - one of the largest and highly rated online baby retailers in Australia (APAC)
  • BecexTech - a specialist Australian online electronics retailer (APAC)
Praemium (ASX: PPS) Global leader in the provision of technology platform, Praemium (ASX: PPS) achieved very solid progress across a number of growth-focused initiatives during last year. Major achievements for the year included:
  • Record annual gross inflows across Australia and International markets of $3 billion
  • Platform Funds under Administration (FUA) of $9.5 billion at June 2019 and increasing further to $10.3 billion by the end of September 2019, and
  • IMA contributing a rapidly growing 8% of overall FUA growth since its launch in February
Due to the inclusion of the VMA Administration Service (VMAAS) for the first time, total FUA has hit the $20 billion mark in FY19 (year end 30 June 2019). The company now expects VMAAS to be an important driver of future growth. The diversification of the company business and the significant broadening of its addressable market and product offering have contributed to strong growth in its international business, which continues its drive towards inflection. International growth (Source: Company reports) By AEST 3:23 PM, PPS stock was trading at a price of $0.482 with a market cap of around $196.02 million. EML Payments Limited (ASX: EML) Payment solutions provider, EML Payments Limited (ASX: EML) recently through its wholly owned subsidiary, EML Payments USA, LLC struck a deal with global shopping mall operator Simon Property Group for the distribution of multiple payment card products through select Simon shopping malls as well as Business to business (B2B) distribution channels in the USA. Over the last five financial years, the company’s EBITDA has grown at a CAGR of 82%. Major growth drivers
  • Gaming - Expand European and North American programs
  • Salary Packaging- Transition contracted benefit accounts
  • Gift and Incentive- Expand mall programs and use of instant gift
  • Delegated Authority- Launch delegated authority to new verticals
  • VANS- Processing plus solution gaining traction
Notably, in the last one year, EML stock has provided a return of 217.85% on ASX. flexigroup Limited (ASX: FXL) Finance solutions provider flexigroup Limited (ASX: FXL) has partnerships with more than 65,000 sellers and serves around 1.7 million customers globally. In the Buy Now Pay Later category, the company has humm – the only product in its market to offer up to $30,000 interest free. The company has announced an extension of its Buy Now Pay Later offering, with the introduction of a new product that we believe is a category killer – bundll which allows consumers to buy everything, everywhere and pay later. The company has an architectural roadmap in place to reduce:
  • six product systems to one web-origination platform
  • three buyer management systems to one CRM system
  • three fraud engines to one fraud platform; and
  • seven credit decisioning instances to one single platform that is scalable for growth and works across markets.
On a year to date basis, FXL’s stock has provided a return of 48.89% as on 11 December 2019. By AEST 3:23 PM, FXL’s stock was trading at a price of $1.987 with a market cap of around $792.73 million.

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