Novatti has entered an agreement to provide its payments solutions to Reckon users with an opportunity to further monetise its ecosystem.

Multi-channel payments company Novatti (ASX:NOV) shares are up ~8% to 26 cents today after announcing it will integrate its payment solutions into the products of leading accounting software provider Reckon Limited (ASX:RKN).

Novatti last year undertook a $45 million marquee cap raise which it used to fund its next growth phase, including acquiring a 19.9% stake in Reckon.

With 114k + users Reckon has been working collaboratively with Novatti to identify opportunities to add value to its users, including through new payment solutions.

An initial focus will be incorporating payments into the Reckon One accounting software platform and a new invoicing app, which will see Novatti services integrated into invoices issued.


Monetise payments ecosystem

Novatti and Reckon will share equally any gross margin revenue generated from the integration with any revenue subject to service demand.

Novatti Managing Director, Peter Cook, said it was an opportunity to further monetise the company’s payments ecosystem.

“Since making our strategic investment in Reckon in July last year, we have really enjoyed working collaboratively with Reckon’s team to identify opportunities  to  add  value to  their  customers and  further  monetise  Novatti’s  payments ecosystem,” Cook said.

“The integration of Novatti’s payment solutions into Reckon’s products is the first step in this process.

We look forward to continuing to work with the Reckon team going forward and to seeking other opportunities to add value to their 114k+users.”

Reckon Group CEO Sam Allert said the agreement provides an opportunity to extend services to its customer..

“As we continue to increase investment in the development and launch of new products,  we are exploring a number of ways to drive additional revenue streams and automation  solutions for our clients,” Allert said.

“This  agreement with Novatti will provide Reckon with the opportunity to further monetise  its existing customer base and deliver additional services at a competitive rate.”


Record H1 FY22 results

Novatti achieved record-breaking H1 FY22 results, including 51% year-on-year growth in first half sales, setting a record for sales revenue of well over $11 million.

Total revenue for H1 FY22 was $12.3m, also a record. The company’s payment processing business more than doubled – growing some 113% to $9.1m.

Revenue growth continues to benefit from Novatti’s largely transactional bases, enabling it to easily scale up.

The company strengthened its balance sheet in H1 FY22 with net assets up nearly 370% on the prior half.

At the end of H1 FY22, Novatti’s cash balance was just shy of $13m.


This article was developed in collaboration with Novatti, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.