Afterpay partners with Novatti in New Zealand

Highlights

•  Afterpay partners with Novatti for delivery of payment cards in New Zealand
•  Leverages Novatti’s Visa partnership and recent new licences in New Zealand

Novatti Group Limited (ASX:NOV) (Novatti or Company), a leading digital banking and payments company, is pleased to announce that it has been selected by Afterpay for the delivery of its payment card program in New Zealand.

Afterpay is an Australian fintech company listed in the S&P/ASX 20 that has revolutionised the way that consumers pay for goods and services. It has grown into a leading international player in the Buy Now Pay Later (BNPL) sector, with over 14 million active customers globally.

 As part of this new partnership, Novatti will leverage its licence with Visa to enable Afterpay to issue Visa card solutions. This includes enabling Afterpay’s users to access Afterpay-branded payment cards in their digital wallet for use at participating merchants across New Zealand.

The initial agreement is for three years. Novatti will receive project setup, monthly recurring and, dependant on the take up of the service, transaction-based fees.

DISC: I hold APT & NOV

Emersion launches in US ahead of strong forecast market growth

Highlights

•  Subscriber billing and payments platform, Emersion, completes next step in international expansion with on time launch in US
•  Full SAAS model expected to result in high-margin, recurring revenues from each new customer
•  Launch comes ahead of strong forecast growth for key US market segments, including the accounts payable automation market, expected to reach US$4b by 2025
•  Emersion going from strength to strength having achieved continuous revenue growth in each quarter since Novatti’s acquisition in April 2020

DISC: I hold

Novatti’s fintech underpins record-breaking hybrid social media platform LITT

Highlights

•  Novatti’s fintech is underpinning LITT’s innovative hybrid social media platform by providing members access to Visa Prepaid cards
•  Highlights increasing convergence between social media and fintech platforms, as payments and transactions are placed at the centre of users’ daily life
•  LITT’s recent $1.5m record equity crowd source funding raise highlights strong interest in this sector
•  Revenues for Novatti based on leveraging the existing digital banking and payments ecosystem while continuing to increase B2C exposure

.....

This announcement follows some of Novatti’s other recent growth-focused achievements, including:

•  Supporting innovative fintech platform Lifepay to move to a full commercial launch( 4)
•  Record half-year sales revenue of $7.35m, up 49% year-on-year, highlighting consistent, long term growth(5)
•  New record quarterly sales revenue of $3.79m, up 52% year-on-year(6)
•  Novatti’s Visa Prepaid cards now being supported by Apple Pay(7)

(4) Novatti ASX Announcement – Lifepay moves to commercial launch – 16 March 2021

(5) Novatti ASX Announcement – Half year update and Appendix 4D – 25 February 2021

(6) Novatti ASX Announcement – Another quarter of record revenue as investment in platforms delivers growth – 29 January 2021

(7) Novatti ASX Announcement – Novatti’s Visa Prepaid cards now supported by Apple Pay – 22 January 2021

Disc~small holding

Lifepay taps into Novatti’s ecosystem to launch new B2C fintech platform

Highlights

•  New, innovative fintech platform, Lifepay, launched leveraging Novatti’s technology and licences
•  Enables users to manage daily life transactions, personal and social finances from a mobile device
• Lifepay has agreed a Series A fundraising with a pre-money valuation of $20.5m
•  Novatti’s 25% shareholding, pre Series A funding, followed a technology and services contribution, and implies a valuation of $5.125m

Disc; I have small holding

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