Growth in Acquiring

Latest update from Peter Cook:

Good afternoon,

I wanted to provide you with an update on the ongoing growth in our Acquiring business.Novatti enables businesses to pay and be paid. Acquiring is a key enabler of this.

Our solutions enable businesses to accept payment from consumers online, in-store and through mobile, from credit and debit cards, direct debits to various digital wallets along with Amex, UnionPay Alipay and WeChat Pay.

We are incredibly proud of the fact that we have developed and commercialised this business in-house. The growth we've seen in Acquiring since doing so has been quite remarkable, including:

• 800+ merchants now being serviced and growing rapidly across Australia and New Zealand
• $45m+ in gross transaction value processed in Q1 FY23 alone – an increase of 72% on the previous quarter

But we are just getting started. The potential of this business is staggering, with a total addressable market of $677b and a 5.1% CAGR from 2016 - 2021. Within this, we will focus on capturing market share where our solutions provide a unique offering, including in key markets such as education, retail, utilities, charities, professional services and associations.By commercialising Acquiring in-house, we have designed the business to be easily scalable and to integrate new partners, services and capabilities as they emerge.

Some examples of our recent increasing capabilities and innovation include:

• Offering a “tap and pay” solution for businesses, enabling them to accept payment through an Android device without the need for any additional payment terminal or hardware.
• Integrating our solutions into the products of leading accounting software provider, Reckon Limited, enabling payments to take place directly through issued invoices.
• Providing 100% protection from fraudulent chargebacks through a partnership with Riskified.
• Working with point of sale network provider DataMesh to extend our offering to potentially many thousands of retailers and businesses.
  

All this innovation is getting recognised by the industry. Most recently, we were nominated for the Best Payments Gateway at the Nora Solution Partner Awards.Novatti's Acquiring business is very innovative and is highly scalable. We believe this business has a very bright future and will have an increasing impact on Novatti’s performance, growth and margin contribution going forward.