Novatti shares soar after Afterpay chooses it for New Zealand partnership
Link copied to
Fintech Novatti Group (ASX:NOV) has announced it has been selected by Afterpay (ASX:APT) for delivery of the buy now, pay later giant’s payment card program in New Zealand.
Novatti Group will leverage its licence with Visa to allow Afterpay to issue Visa card solutions, letting Kiwi Afterpay users access Afterpay-branded payment cards in their digital wallets for use at participating merchants in New Zealand.
Novatti will receive project setup, monthly recurring and possibly transaction-based fees over the course of the three-year agreement.
“This new partnership with Afterpay again highlights Novatti’s digital banking and payments ecosystem in full operation, enabling innovative fintech companies to leverage our assets to bring new products and solutions to market,” said Novatti managing director Peter Cook.
“Working with Afterpay will see Novatti generate further revenue and value from existing assets, highlighting our increasing shift from a development to a monetisation phase.
“This is another great example of Novatti’s ability to work with the world’s most innovative fintech companies.”
This afternoon Novatti shares were trading up 14c, or 28.6 per cent from yesterday.
Strength to strength
It’s been a busy period for Novatti, which earlier this month began monetising its partnership with global payments disrupter Ripple, with cross-border transactions to the Philippines now taking place.
Novatti also says its April 2020 strategic acquisition of Software-of-a-Service subscriber billing and business automation company Emersion is bearing fruit, with a recent US launch.
Novatti is also supporting two innovative B2C platforms, LITT and Lifepay, bring innovative fintech products to market.
The company recorded record half-year sales revenue of $7.35 million, up 49 per cent year-on-year, highlighting its fast growth.
This article was developed in collaboration with Novatti Group, 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.