Join our daily newsletter At The Bell to receive exclusive market insights
- Novatti Group (NOV) has launched a new fintech platform to extend its reach and leverage the company’s technology and licences
- Lifepay provides consumers with access to the latest technology in banking and payments via their mobile phone
- A soft launch of the platform is currently underway for 200 users, with a full commercial launch planned for March 2021
- Lifepay recently agreed to Series A fundraising with a pre-money valuation of $20.5 million
- Novatti shares are down 7.69 per cent, trading at 42 cents
Novatti Group (NOV) has launched a new fintech platform to extend its reach and leverage the company’s technology and licences.
The new platform, Lifepay, provides consumers with access to the latest technology in banking and payments via their mobile. The platform’s services include digital banking, access to multiple payment methods like QR codes and Tap and Go, and connections to friends and family without the need for bank details.
A soft launch of the platform is currently underway for 200 users, with a full commercial launch planned for March 2021. Lifepay’s services will then extend to include international transfers and connectivity to investment and leading platforms over the following six month.
Novatti is a major shareholder in Lifepay, holding 25 per cent of its shares prior to the Series A funding.
Lifepay has now secured a Series A investment of up to $2.5 million at a pre-money valuation of $20.5 million, implying a valuation of $5.12 million for Novatti’s shareholding.
In addition to benefiting as a shareholder from future growth in the platform, Novatti will also earn fees from user activity. This includes compliance services, cross border payments, payment acquiring and the issuing of Visa Prepaid cards.
This investment is being progressively drawn down against the business plan. If fully drawn down, Novatti’s shareholding will reduce to around 22 per cent.
Lifepay will also act as a channel partner for other Novatti products and services and as a potential customer acquisition channel for Novatti’s banking business. The company’s application for a restricted banking licence is currently being assessed by the Australian Prudential Regulation Authority.
“Novatti’s strategy has been to develop a digital banking and payments ecosystem that enables innovative products to leverage Novatti’s existing platforms to get to market quickly. This strategy also enables Novatti’s platform to scale quickly, providing customer acquisition and value-add channels for our existing businesses, extending our reach into the B2C market, while generating high-margin revenues,” said Novatti’s Managing Director, Peter Cook.
“The launch of Lifepay is an example of Novatti’s ecosystem at play and highlights Novatti’s broader shift from a development to a monetisation phase for its digital banking and payments platform”.
Company shares are down 7.69 per cent, trading at 42 cents at 2:54 pm AEDT.
