Novatti just started making pots of money from its Alipay bill website
Novatti isn’t buying Australian milk to send to China, but has found another way to tap the moneyed Chinese population at home and overseas.
The company says its gamble on a payments service for China residents to pay bills in Australia is paying off so well they’re looking at transaction volumes rising from $460,000 in January 2019 to an estimated $700,000 in February.
In the December quarter the dollar value of transactions still only averaged $200,000 a month.
As to the reasons for the pick-up? Novatti CEO Peter Cook attributed it to an increasing level of trust as the product spends more time on the market.
“We think it’s partly the result of a lot of digital marketing, but it’s also just viral behaviour where one person tells their friend and they tell someone else,” he told Stockhead.
“It takes quite a bit of trust to use a product like this and you need some time for that trust to build.”
Paying the man
Early last year the listed fintech (ASX:NOV) was looking for a way to simplify how people who live in China can pay bills in Australia.
And in April, it said it had found a solution: link the process to Alipay, the huge Chinese payments network used on Chinese e-commerce giant Alibaba.
The business, called Chinapayments.com, is aimed at Chinese nationals who have, say, a child studying in Australia. Novatti’s service allows them to pay rent, bills and university fees straight from their Alipay account.
Novatti clips the ticket on each transaction by charging an “additional service fee” and gets Alipay to take care of the currency exchange.
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Source: Novatti just started making pots of money from its Alipay bill website – Stockhead
