Back-end payments providers moving to the front of investors’ minds
Following the historic takeover of Afterpay by US-giant Square (ASX:SQ2), venture capital interest for Australian back-end payment service fintechs has picked up as merchants and consumers demand more innovative solutions that encompass crypto, QR codes and BNPL payment infrastructure.
While tech stocks have taken a battering in recent months, back-end payments companies are still seeing growth with Novatti (ASX:NOV) reaching a $10 million quarterly revenue milestone for the first time following its acquisition of ATX. Confidence in unlisted fintechs also remains high with cross-border payments provider and global unicorn Airwallex raising $137 million, less than two months after a fresh $275 million and Sydney based DataMesh locking in $12 million in a pre-series round featuring NAB Ventures, ahead of an expected $100 million raise later in the year.
It’s all part of a broader movement accelerated by digitisation post-COVID, says DataMesh CEO, Mark Nagy.
“This fintech revolution spurred on by COVID has created a seismic shift in the way the financial world operates. Consumers and merchants are yearning to tap into innovative payment solutions and offer better in-store experiences, the issue is legacy systems are slowing them down. Building a solution that solves this fundamental problem and provides stability for banks and merchants while continuing to offer choice to customers is the final piece in the puzzle and something we’re very proud of offering at DataMesh.”
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Source: Back-end payments providers moving to the front of investors’ minds – Stockhead