Starting to get my mind around where this acquisition could take PushPay.
The Company recently signalled that there would be considerable consolidation of service providers to the USA faith sector. Whenever I hear consolidation, I immediately think of mergers and acquisitions. So the just announced PPH / CCB merger on a much wider scale.
If you visit the CCB website, you can scroll down to the section on integrations and preferred partners. They have near on 30 partners offering a myriad of software solutions and services. The spread would indicate that each of their 4000 churches would be using a varied range of these support services on a cost per use basis.
If you think of what PushPay has developed over the last few years, it would be fair to say that their opening proposition to a church would be to offer a plug-in & play solution, centred on donor / congregation engagement and management, digital payment processing, account keeping (via QuickBooks) and professional advisory services. If CCB’s variety of services is a typical industry benchmark, then you start to understand why on-boarding a church is so complex....integrating with a multitude of interfaces (installed software and services). Can now understand why on-boarding a single church can take months.
Now maybe industry consolidation takes on a new meaning. I suspect Push Pay have their sights on developing the ‘one stop shop’, this negating the need for all these complex integrations.
If this line of thinking is anywhere near correct, then you can start to relate to growth via consolidation, this being absolutely transformative but resulting in many casualties along the way. Becomes a much higher stakes game. Managing conflicts of interest and vested interests could be difficult and carry risk. For those that succeed, the prize could be huge.
Above fits with the timeframes provided, with little emphasis on near term financial metrics. Hope they will communicate something soon but my money is on a major transformation culminating in a one-stop shop.
Rokewa
PPH Price at posting:
$3.93 Sentiment: Buy Disclosure: Held
