Cirralto Update: SpendaCollect market fit

  • Aug 04, 2020 AEST
  • Team Kalkine
Cirralto Update: SpendaCollect market fit


  • Cirralto’s digital Spenda suite of payments products has witnessed robust performance with more than $1.7 million currently processed by customers through the Spenda platform. 
  • The Company’s payment technology is primarily directed to B2B transactions which have a significantly higher value than business to consumer (B2C) transactions. 
  • Cirralto collects a percentage of every payment along the value chain, enabling the Company to profit well utilising its payment software, SpendaCollect and SpendaPay.

Staying ahead of the curve, Cirralto Limited (ASX: CRO) specialising in the business payments products and software solutions is poised for growth off the back of its digital payment suite. In a significant update, the Company indicated that it is transitioning to a digital payments company centred around facilitating B2B payments processing for its customers. Meanwhile, the Company’s digital payment technologies have demonstrated an impressive performance since its launch last month. 

Post the significant update, CRO stock marked an uptick of over 9% on August 3, 2020 to close at $0.012.  

The Spenda family of payments products, SpendaPay and the recently launched SpendaCollect, are designed to provide both a productivity boost and a significant cost savings to customers.

ALSO READ: Cirralto’s digital payment Portfolio well-positioned

The change in consumer behaviour induced by the Covid-19 pandemic has been a tipping point for the digital payment industry as more customers and businesses adopt convenient, no-contact solutions over cash payments. Cirralto is well positioned to benefit from these changes and bolster its current position in the digital payment space. 

Commenting on the recent market update,

He also highlighted that future development would focus on implementing methods of trade finance and “Pay later” technology. He stated that the addition of these two functionalities would help the Company cater for the increased demand for its services. 

Recent Spenda Payments performance Corroborating Success

Cirralto has begun up-grading current customers to the Spenda payment suite. Businesses using the technology deployed by Cirralto and its merger partner, Appstablishment are processing gross billings worth around $250 million every month. As of now, over $1.7 million payments are being processed by customers though the Spenda platforms. A marked step-up has been noted in customers using the Spenda products, with a growth of 396% in Average Revenue per User (ARPU) since April. 

The Company nets a proportion of the total transactions processed per merchant and charges an average merchant fee of 1.45% on the total value of transactions processed. 

In July, the Company witnessed Total customer growth of 10.4% and addressable market growth of 9.4%

The customers via SpendaCollect are empowered to digitalise their payments processes and take the next step in their digital strategy. Notably, almost any industry can use SpendaCollect, and the addressable market in Australia alone constitutes conservatively over $100 billion in merchants’ payments. 

The market fit for SpendaCollect

The collaborative payment system, SpendaCollect connects buyers and sellers, enabling them to balance their ledgers while also facilitating customers to make accurate and reconciled payments through their preferred payment methods. 

TO KNOW MORE READ: Cirralto Seizes the Limelight with the launch of SpendaCollect Platform, Stock soars

Although SpendaCollect has applications in both the B2B and B2C market, Cirralto has directed its focus on the B2B market, which delivers significant revenue acceleration with relatively few customers. As informed by the Company, the scale of their B2B merchants is such that 2,500 – 3,000 retail merchants are corresponding to 100 SpendaCollect merchants.

How the Spenda product suite makes money from B2B and B2C transactions

The Company, utilising SpendaCollect and SpendaPay applications, is positioned to profit from transactions along the entire value chain. A percentage of every payment is collected by Cirralto from wholesaler to the manufacturer, retailer to wholesaler and consumer to the retailer.

Source: CRO ASX Update

Source: CRO ASX Update

Fostering Competitive Advantage in B2B Payments 

Spenda payment technology is revolutionised B2B payments and offers a single platform, enabling all businesses to receive what they are owed on time. B2B merchant transactions have a limit which is around 25 times more than their retail equivalents.

Markedly, while the number of transactions processed by B2B merchants are fewer than retailers; the transaction value is substantially higher compared to that of retail to consumer (B2C) transactions. Owing to compliance obligations, B2B merchants are also more invested in getting paid on time.  

Big buyers currently tend to drive Business-to-Business (B2B) payment services, which do not provide benefits to the supplier, instead they fragment business processes. Furthermore, the existing supplier based B2B billing and invoicing platforms usually neither enable customers to pay multiple transactions via single payment, nor they offer remittance integration into both the customers’ and suppliers’ accounting / ERP systems.

In comparison to the average retail transaction of less than $500, SpendaCollect in a single statement payment can process over $25,000. Therefore, in the payment space only fewer merchants are required to secure their market share and blocks of revenue.

Considerably far fewer merchants are required to acquire substantial blocks of revenue and market share in the payments space. 

Notably, Cirralto plans to release B2B “Pay Later” and trade finance modules in partnership with Invigo.


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