Competitor Analysis, page-141

I assume you are referring to the statement on p9 of the Activities report:

"Cirralto charges an average of 1.5% for card transactions and 0.6% for bank transfers over the Pay By Link network. Depending on the rate the Company purchases these transactions, it will generate net revenue between 0.70% to 1%from the total transaction volume, for credit card payments and a variable rate for bank transfers."

Also from p8:

"Being predominantly a B2C tool for collecting payments from retail and service customers, Pay By Link introduces mainstream consumers to the Spenda suite and paves the way for the release of Spenda’s wallet functionality"

"The technology underpinning Pay By Link will be used as the framework for subsequent B2B releases including Pay Statement By Link, which is currently being developed and is scheduled for release in March quarter 2022."

This is an interesting difference between Spenda and Block, because when a customer purchases with Afterpay, Block makes 4% margin on the sale but of course carries the liability of the consumer defaulting and the burden of complying with consumer credit law which is a sector Spenda probably don't have the capacity to attempt to service. This is the thing, today's AFR article implies that Block is happy to take Afterpay's 4% clip as the total margin for Square merchants.

I think it was stated in the October activities report that the BOD have already authorised setting aside $10m of the cash on hand as the security against up to $100m of debt warehouse. I quoted the statement yesterday.

I was thinking this morning that business conditions might actually favour Spenda raising DW financing through some sort of debt vehicle. I suspect we will see investor money flow from equities into corporate bonds as rising corporate bond yields are likely to provide more attractive yields relative to equities over the medium term.