I think Paypal would be a valuable partner for SPT because of the turnover through Paypal (USD$712 Billion Total Payment Volume, 2019 Paypal Annual report), however with PYPL already having developed their own BNPL system and with the kind of resources they have, I don't understand why they would need to use SPT (maybe there is a reason that's already been explained here, happy to be corrected).
More importantly I think the main game is already in play for SPT with it's partnerships with VISA and Mastercard, because of their turnover (figures from their 2019 Annual Reports):
Visa Payments Volume US$8,800,000,000,000 Mastercard Gross Dollar Volume US$6,500,000,000,000 Total US$15,300,000,000,000 Total in Australian dollars AU$20,816,326,530,612
So if 1% of that amount is processed using SPT that's turnover AU$208,163,265,306. and if SPT receives revenue of 2% of that amount that's $AU4,163,265,306 and if one quarter of that is Net profit before tax that's AU$1,040,816,326 and assuming SPT has had to raise more capital to fund further expansion and has 700 million shares issued, that hypothetically results in EPS of AU$1.4868 and if we assume a PE of 25x that implies a share price of about AU$37. I've tried to be conservative with the numbers. We would all know that there are many stocks that trade above 50x eps.
This is a highly speculative look at SPT's potential, there's absolutely no guarantees, this is not even an opinion, just a series of calculations based on raw numbers taken from Annual reports. Not even IMO, DYOR
SPT Price at posting:
$1.73 Sentiment: Buy Disclosure: Held
