Novatti targets B2C market with new Lifepay platform, shares up ~100pc in February
Shares in the company rose by another 5pc in morning trade following the news.
Payments company Novatti (ASX:NOV) continues to generate momentum with its global B2B model, where it processes more than $2bn in transactions per year.
And this morning the company announced an expansion to its B2C market reach with the launch of Lifepay — an integrated platform that allows users to manage their payments and personal finances quickly and easily from their mobile device.
Novatti is a substantial shareholder in Lifepay with a 25 per cent stake in the business.
Lifepay recently secured a Series A investment of up to $2.5m at a pre-money valuation of $20.5m, giving Novatti’s investment a paper valuation of $5.125m.
Along with benefitting from its investment in Lifepay, Novatti will also generate revenue through the platform via services including cross border payments and the issuing of Visa Prepaid cards, the company said.
The Lifepay platform includes a digital banking service, with access to bank accounts, pre-paid Visa cards and digital transfer services including instant transfer and bill-split features for friends and family members.
It also offers a one-stop shop for different tech payment features such as QR codes, Tap and Go and peer-to-peer transfers, as well as bill payments (such as BPAY).
The platform is currently undertaking a soft launch for 200 customers, with a full launch scheduled for early March.
Leveraging Novatti’s existing licences and compliance functions as a payments provider, the Lifepay platform will then expand its feature set to include functions such as international transfers.
Discussing the launch, Novatti CEO Peter Cook said the Lifepay growth strategy dovetails with the company’s strategy to build out a global payments ecosystem.
It also allows the company to leverage its existing attributes, which include an AFSL licence in the Australian market, to expand quickly and efficiently into new markets.
“The launch of Lifepay is an example of Novatti’s ecosystem at play, and highlights Novatti’s broader shift from a development to a monetisation phase for its digital banking and payments platform,” Cook said.
“This strategy also enables Novatti’s platform to scale quickly, providing customer acquisition and value-add channels for our existing businesses, extending our reach into the B2C market, while generating high-margin revenues.”
The Lifepay news follows on from a big Q4 sales update at the start of February, where Novatti announced record quarterly revenues of $3.79m.
Since the release of those results, shares in the company have risen from ~25c to almost 50c, following another five per cent gain today in morning trade.
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.