This is really interesting - it seems that both Reckon and...

This is really interesting - it seems that both Reckon and Novatti can clearly see the opportunity and have moved swiftly to capitalise on it.

114,000 small to medium businesses. And let's say conservatively 5-10% turn on the "Pay now" function over the next 24 months. Only Reckon will have a good feeling for this - obviously retail shops, for example, will have a low attraction to "Pay now" but many tradies, designers, sole traders etc will find this attractive as saves chasing invoices.

So assume an average small business that has invested in (affordable = Reckon) accounting software is a sole trader + 1-2 helpers, with turnover of say $10k (low) to $50k (high) per month + GST (labour + materials etc). I am thinking say a small design company at the low end, and a sole trader electrician + apprentices at the higher end.

This gives a volume through 'Pay now' of:
Low end : 5% x 144,000 x $10k x 12 = $864 million transaction volume
High end : 10% x 144,000 x $50k x 12 = $8.6 billion transaction volume

1.5% processing fee (to be split 50/50 between Reckon and Novatti) is therefore a wide range of:
Low end: $13 million (50% share = $6.5 million)
High end: $130 million (50% share = $65 million)

I would guess that the true figure will be somewhere between the two. But even at the low end - this outcome would more than double their existing processing revenue.

So the deal sits somewhere between 'very helpful' and 'transformational'.