Short term everything looks as expected, in-store payments...

Short term everything looks as expected, in-store payments aren't dead yet, and card payments keep on going up because of cash replacement.

Not sure if I am starting to imaging things but this is where I get anxious. Despite the current lockdowns, Tyro is doing well only because of external factors?

Whatever products they release, they don't seem to get traction.

• Alipay only delivered $16mn (0.5%) of transaction volume out of the total $32bn. I don't accept the COVID explanation on low transactions numbers. Chinese New Year is the most significant spending time for Chinese visitors. CNY was pre-lockdown.
• eCommerce, launched in March 2019 and they only have 384 merchants activated (c. 1% of merchant base after 1.5 years). The solution is MPGS white-label. As per the report, this is on par with CBA and a few other products. I expected the cross-sell to be higher, especially as eCommerce is an adjacent product to the base in-store product offer.
• Deposits and lending (banking) released 5 years ago and still only 1% of the revenue?? With margins up to 8%, lending should be the most profitable product. (Compared to in-store payments which has 0.92% reported margin and going down). I expect more in the lending product after 5 years. Or kill banking alltogether because it is not performing and it is a massive distraction from the payments business.

To top it off, on the media releases, there isn't much of notice since 2018. $52mn (54% of CODB) staff costs for not delivering much that contributes to long term growth makes me anxious. Because it is a long term problem I am still holding, not sure for how much more patience I can muster.