Novatti announce pipeline of 500+ new merchants to be onboarded by the end of H1 FY25
ASX-listed Novatti Group, a leading fintech that enables businesses to pay and be paid, have provided an update on the continued commercial results of its market-led, customer focused strategy introduced in FY24.
This shift in strategy is the second stage of Novatti’s broader transformation, initiated at the beginning of FY24 under a new executive leadership team. Results from this transformation so far include:
- 12 independent businesses streamlined into 4 operating divisions
- $12.4 million of quarterly revenue in the March quarter of FY24 – a new record1
- 21% increase in quarterly revenue in Q3 FY242
- 23% decrease in quarterly expenses in Q3 FY24
- $4 million+ annualised cost reduction program implemented and positive impacts flowing
- $1.5 million commercial wins announced in April 2024
Novatti‘s continued execution of the market-led, customer focus has resulted in a pipeline of 500+ new merchants to be onboarded by the end of H1 FY25. This onboarding pipeline follows Novatti securing the following new partnerships and commercial wins since April:
- Education: Novatti’s Asian payment solutions have been integrated with a global education software business that services 33 universities across Australia and New Zealand
- University union: the student union at a major university with approximately 36,000 international students is partnering with Novatti to market and promote a digital bill payment service, including for tuition payments. This service will go live in July 2024 and enable payments for the July semester onwards, with on-campus marketing scheduled for the university’s orientation week
- Hospitality: Novatti is now a payments partner for a rapidly growing hospitality QR code ordering platform and, as a result, is in the process of onboarding 300+ food and hospitality merchants
- Wine distributor: an international wine distributor based in Australia has engaged Novatti to integrate digital wallet payments services into their platform, which reaches 200+ retail locations nationally
- Fitness chain: an existing major fitness chain client has on-boarded 46 new merchant outlets since commencing their migration onto the Novatti platform in April 2024
Payment processing will commence immediately after each merchant is onboarded in line with AML/CTF standards and will establish baseline processing data for future reporting periods.
Novatti continues to attract strong growth within its Payments AU/NZ business, particularly within merchant acceptance. As of 31 May 2024, 722 merchants were using Novatti for their payments acceptance, a 15.7% increase since the start of FY24. This result is net of intentionally offboarded customers following a review of their financial performance and risk profile during FY24, helping drive positive operating leverage and profitability.
Upon completion of the onboarding of the 500+ new merchants scheduled by the end of H1 FY25, Novatti expects to service more than 1,200 merchants in total.
Novatti CEO, Mark Healy, said, “These ongoing wins demonstrate how Novatti’s market-led, customer focused approach is winning support from Australian businesses. It is particularly pleasing to see clients seeking extended Novatti services following our shift in strategy, which has been a clear benefit of simplifying the business to service cross-functional needs. This is part of the broader momentum we are witnessing across the business, coming off the back of a record quarter of revenue in Q3 FY24.
“Furthermore, we have now fully implemented our $4 million annualised cost reduction program. A further $3 million in annualised costs will also be removed from the business in Q1 FY25. These savings form part of the plan to achieve positive operating cashflow by the end of H1 FY25.”
