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Novatti Group (ASX:NOV) to integrate payment solutions into Reckon (ASX:RKN) platforms

ASX News, Finance
ASX:NOV      MCAP $17.43M
04 April 2022 09:43 (AEST)

Source: Novatti Group

Novatti Group (NOV) has reached an agreement with accounting software platform Reckon (RKN) to integrate Novatti’s payment solutions into Reckon’s products.

The agreement covers existing and new Reckon products, with an initial focus on integrating payments into the Reckon One accounting software platform and new invoicing app.

Novatti said the agreement offers an opportunity to further monetise its existing payments ecosystem.

Any gross margin revenue generated from the agreement will be shared equally between Novatti and Reckon, with any revenue subject to service demand.

“Since making our strategic investment in Reckon in July last year, we have really enjoyed working collaboratively with Reckon’s team to identify opportunities to add value to their customers and further monetise Novatti’s payments ecosystem,” Novatti Managing Director Peter Cook said.

“The integration of Novatti’s payment solutions into Reckon’s products is the first step
in this process … (as we seek) other opportunities to add value to their 114,000-plus users.”

In the latest December quarter, Novatti posted a 53 per cent year-on-year (YoY) growth in sales revenue to $5.8 million, ending the quarter with a cash balance of about $13 million.

The fintech company’s payment processing business contributed a 122 per cent YoY increase in quarterly processing revenue to $4.9 million, marking 11 straight quarters of record revenue for the payment processing business, according to Novatti.

NOV shares last traded at 24.5 cents and RKN shares at 90 cents.

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