- The company has high operational gearing in a positive sales cycle
- Platform-led business focussed on SMEs and large corporates
Earnings risk is skewed to the upside for this fast-growing fintech company in the payment processing sector, which is valued on a cash-adjusted forward price-to-earnings (PE) ratio of 12 for 2023. The business is taking on the incumbent banks in the payments space by providing a superior user experience and a low-cost operating model. By offering market leading exchange rates, and targeting the business-to-business segment, the group is now delivering eye-catching growth in transaction volumes. Moreover, with a relatively fixed cost base, an increasing proportion of incremental revenue earned is being converted into profit.
The global payments market is a highly complex space that is measured in many trillions of pounds, comprising payment mechanisms from cash, cards, and account-to-account transfers across physical, internet and mobile interfaces. This firm differentiates itself from rivals by offering both account-to-account transfers and cards, overlaid on a technology platform that provides bank-grade connectivity and security on superior customer interfaces.