They probably use some licenced banking infrastructure skimming part of the full margin. They can use their own infrastructure when they have a banking licence to avoid an extra layer of skimming. Overall industry skim rate is approx. 1.5% & is split between licenced & non-licenced operators with the bulk going to the licenced operator.
Same applies with Visa/Mastercard acquirer licences. PC mentioned they were previously making 0.6% or so of a total 1.5% margin but now it will be about 0.9% NOV + 0.6% third party as NOV will be the principal licenced acquirer. NOV must be currently using third party acquirer licence. Fintechs without acquirer licences can then use NOV & make their 0.6% margin like NOV used to make while NOV will make the higher 0.9% margin. NOV already has an issuer licence which is different from an acquirer licence due shortly.
Overall where NOV's split of the margin was about 35% it will increase to about 65% with the licences. So instead of making 0.6% they will be making 0.9% resulting in increase of 50%. If it applied to their entire revenue it will result in a 50% increase from say $20M run rate now to $30M run rate but I don't think it will apply on every revenue stream. If $5M of the revenue is affected it will result in an extra $2.5M revenue etc. The consistent 50% YOY revenue growth should rise with increased margins adding to revenue.
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