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Highlights:
Ovanti secures a long-term licensing agreement with BNPLPay Protocol, enabling access to cost-effective funding for BNPL services.
The agreement incorporates a revenue-sharing model, allocating a portion of BNPLPay Protocol's earnings to Ovanti.
Funding for the agreement is raised through share placement, aiming to significantly lower financing costs.
Ovanti (ASX:OVT), a company operating in the financial technology sector, has entered a long-term licensing agreement with BNPLPay Protocol. This agreement integrates blockchain-based decentralized finance into Ovanti’s funding framework, providing streamlined access to lending resources tailored for Buy Now, Pay Later (BNPL) services.
The collaboration enables Ovanti to utilize BNPLPay Protocol’s ecosystem, which connects stablecoin lenders with BNPL service providers. This approach enhances operational efficiency by reducing reliance on conventional financial channels and associated borrowing costs.
Revenue-Sharing Model Strengthens Financial Outlook
As part of the agreement, Ovanti will receive a portion of the revenue generated by BNPLPay Protocol. This structure introduces an additional income stream for Ovanti, aligning its financial success with the expansion of the decentralized finance network.
With an increasing number of lending transactions on the platform, this collaboration provides an avenue for Ovanti to benefit from the broader adoption of blockchain-driven BNPL solutions.
Capital Raising and Cost Optimization
To facilitate this agreement, Ovanti conducted a share placement, issuing shares at a fixed price to generate capital. Additional shares were allocated to the BNPLPay Protocol Foundation as part of the agreement.
The raised funds enable Ovanti to access a network of stablecoin-backed lenders, providing an alternative to traditional financing mechanisms. By removing the need for first-loss capital, the company can enhance its financial flexibility while reducing borrowing expenses.
Strengthening Market Position Through Innovation
Executive Chairman and Interim CEO Daler Fayziev emphasized the strategic importance of this partnership in addressing funding challenges faced by BNPL providers. The preferential financing terms granted through the agreement create an advantage over conventional banking options.
This development enhances Ovanti’s ability to operate efficiently within the BNPL ecosystem while fostering financial agility. The integration of decentralized finance solutions positions the company as an active participant in the evolving fintech landscape.
