Person looking at credit card while making a purchase on their phone

A subsection of the booming fintech sector, innovative payment services are experiencing a hay day.

Paytech is just what it sounds like — technology for payments. In Australia, changes to open banking laws plus the need for contactless payments through the global pandemic has meant a major uptake in paytech services.

There are more than 1 million Aussies shopping online each month as different parts of the nation continue to be under COVID-related lockdowns and stay at home orders.

A subsection of the booming fintech sector, innovative payment services are experiencing a hay day. Paytech options are everywhere, with examples like mobile, peer-to-peer, cryptocurrency payments and international payments.

5 Biggest ASX Paytech Stocks

The Investing News Network looked at the biggest paytech stocks on TradingView sorted by Market cap. Data for this list was obtained on September 30, 2021.

1. Afterpay (ASX:APT)

Market cap: AU$35.37 billion

The startup founded in Sydney's eastern suburbs five years ago is now a global brand and employs some 700 people globally serving millions of customers. The brand name has become a verb for buy now pay later — "I'll after pay it." AfterPay was acquired by giant payments provider Square for AU$39 billion in August 2021. Group Total Income for FY21 was 78 percent higher than the previous year at AU$924.7 million, and Afterpay Income increased by 90 percent.

Early investors have reaped the benefits of AfterPay's booming rewards. An investigation by the Australian Financial Review found singer John Farnham and wife Jillian started investing in 2017 when share prices were low and today they hold 36,304 shares at a value of close to AU$3.2 million.

2. Sezzle (ASX:SZL)

Market cap: AU$1.13 billion

Sezzle is the Certified B Corp buy now pay later option that listed on the ASX in 2019. Often dubbed the "mini-Afterpay," the business is based in Minneapolis, US, and has been trying to make "Just Sezzle it" happen since it formed in 2016. The company serves customers mostly in North America, with plans to expand to India.

The company reported an after-tax loss of US$30.4 million for the six months ending June 30, 2021, and it saw an income increase of 159 percent for the same period, alongside an increase of 102 percent in costs.

3. Openpay Group (ASX:OPY)

Market cap: AU$173.92 million

Another Australian buy now pay later offering is Openpay, which offers payment plans of up to 24 months and up to AU$20,000. Openpay started in 2013 for Australia and New Zealand, expanded in 2019 to the UK and reached the US in 2020 under the brand name Opy. This contributed to a growth of 44 percent in income for FY21 of AU$26.3 million.

The company positions itself as a financially responsible business for a mature audience wanting funding for life affirming things like home improvement projects. Unlike Afterpay, Openpay does perform credit checks on all clients through their B2B offering, a SaaS-based platform Openpay for Business.

4. Cirralto (ASX:CRO)

Market cap: AU$167.19 million

Cirralto is a transaction services business that supplies a broad range of B2B payment services and a fully integrated digital payment and business software solution known as Spenda. It aims to help businesses to improve their processes and payment terms to so the businesses can get paid faster.

Cirralto's FY21 has been strong, with 157 percent increase in revenue and a 113 percent boost in customer growth. Other big news included the acquisition of software technology company Greenshoots Technology in September 2021. Greenshoots provides a white-labelled eCommerce platform for small and medium businesses.

5. Novatti Group (ASX:NOV)

Market cap: AU$148.95 million

Novatti is a multi-services payment provider for businesses and business customers with year on year revenue growth of around 50 percent for each of the past four years. Its customer base is roughly half fintech companies and banks and half traditional merchants and businesses. Novatti has licenses to operate in Australia, New Zealand and Canada and is obtaining licenses in Europe and Singapore.

The brand has big plans to expand into new markets after a AU$40 million capital raise in July, of which AU$22 million was spent on a strategic investment of a 19.9 percent stake in bookkeeping software Reckon (ASX:RKN). The company is working through licenses with Mastercard and Visa and will be looking to expand into new markets for FY22.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.

Global News
copper pipes and wire
safakcakir / Shutterstock

Aside from copper, Mazumdar also spoke about financing, which he sees as the "big squeeze" facing the resource sector right now.

Joe Mazumdar: Copper is the Commodity of the Decade, Ways to Get Exposure

Investors often focus on the commodities of the moment, but which have potential over the next decade?

Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Joe Mazumdar, editor of Exploration Insights, said copper is his pick.

"Some of it's battery metal exposure, it's construction," he said. "But also on the supply side, the lack of development projects and the higher permitting risk combined with more geopolitical risk in two of the major producers, Chile and Peru. They might have issues with production into a market (where) demand might grow."

read more Show less
fine gold bar
Sashkin / Shutterstock

"I'm bearish on the markets, (but) I'm bullish on gold — physical bullion — and farmland right now," said Mercenary Geologist Mickey Fulp.

Mickey Fulp VRIC 2022

With the general markets in turmoil, Mercenary Geologist Mickey Fulp sees few places to turn.

"It's a difficult situation," he said at the recent Vancouver Resource Investment Conference (VRIC). "I am very bearish, not necessarily on commodity prices, but on the whole resource space and the ability of companies to explore, develop, produce — there's a variety of factors against that right now."

Those include resource nationalism, socialism, anti-development initiatives and green agendas, Fulp explained. Meanwhile, mining companies are seeing energy and labor costs pushed up by inflation.

read more Show less
small shopping cart on keyboard

Ecommerce investing in Australia is heating up, and there are many ways to get involved. Here's a look at major stocks and market niches.

Ecommerce is thriving — not just in Australia, but also globally.

Known formally as electronic commerce, ecommerce refers to the buying and selling of goods and services via the internet. This mode of doing business is the norm today, but it hasn't always been so commonplace — ecommerce has grown alongside the rise of the internet, and it's taken savvy companies along with it.

Australia itself is home to a number of ecommerce powerhouses, and it's not hard to see why. According to the Australia Post, Aussies spent a whopping and record-setting AU$50.46 billion shopping online in 2020.

Ecommerce has boomed lately in part due to the COVID-19 pandemic — extended lockdowns have led to increased online shopping, and the trend has continued even as more brick-and-mortar stores get back to business.

Notably, Australia and New Zealand experienced major ecommerce growth last year. A retail insights report released by cloud-based software provider Salesforce (NYSE:CRM) shows that their ecommerce growth was the highest across the world for two consecutive quarters, coming in at 108 percent in Q2 2020 and 107 percent in Q3 2020.

Investing in Australia's ecommerce space

As ecommerce continues to gain ground in Australia, investors are looking for ways to get involved in this thriving industry. There are a number of avenues, but ecommerce stocks can broadly be broken down into four categories:

  • Direct sellers — a physical store that operates online.
  • Marketplace — a platform that connects buyers and sellers, sometimes also a direct seller.
  • Software providers — cloud-based software that facilitates ecommerce through marketing or customer service.
  • Logistics — helps provide structure to facilitate ecommerce, such as delivery or warehousing.

It's worth noting that some market watchers see the Australian ecommerce landscape as crowded.

Fisher Funds, a specialist investment manager, notes that it can be difficult to identify ecommerce leaders in the country because so many traditional retailers have also built successful online businesses. It also notes that the rise of Amazon (NASDAQ:AMZN) has made it tough for other online retailers to thrive.

"Guaranteed growth in a category does not guarantee positive investment returns from buying shares in companies in that category," cautions the New Zealand-based firm.

Major ASX-listed ecommerce stocks

So where should investors start when it comes to ecommerce investing in Australia? One place to begin is with the larger players in the industry. Here's a look at some of the biggest ecommerce technology stocks on the market.

1. Temple & Webster (ASX:TPW)

Market cap: AU$1.56 billion

This online furniture and homeware retailer reported that its 2021 fiscal year brought record revenue, profit and customer numbers. Its full-year revenue rose 85 percent year-on-year to hit $326.3 million, while the company's active customers jumped 62 percent over the same period to clock in at 778,000.

2. (ASX:KGN)

Market cap: AU$1.16 billion describes itself as an ecommerce company with a growing portfolio of retail and service businesses. Results for its 2021 fiscal year highlight record-breaking gross sales of $1.18 billion, up 52.7 percent from the previous year. Revenue rose 56.8 percent to hit $780.7 million during that time.

3. (ASX:MYD)

Market cap: AU$190.24 million is an online retail marketplace that focuses on homeware, furniture, household appliances and technology. Listed on October 22, 2020, it had a strong debut when it hit the market.

In its 2021 fiscal year results, the company reported revenue of $38.3 million, an increase of 150 percent year-on-year, and 894,225 active customers, up 83 percent in that same time.

4. Maggie Beer Holdings (ASX:MBH)

Market cap: AU$149.24 million

Maggie Beer Holdings represents four premium brands focused on gifting, food and beverages: Maggie Beer Products, Paris Creek Farms, Saint David Dairy and Hampers & Gifts Australia. Results for the company's 2021 fiscal year show that its net profit rose 18.8 percent year-on-year to reach $52.9 million; it also completed the acquisition of Hampers & Gifts Australia during the period.

5. Cashrewards (ASX:CRW)

Market cap: AU$68.97 million

Cashrewards is a cashback loyalty program that connects brands with buyers. The company completed its initial public offering toward the end of 2020, and in its 2021 fiscal year results it highlights the acquisition of 331,390 new members, up 64 percent year-on-year; it now has 1.1 million members. Reported revenue came to $22.1 million.

Other ASX-listed ecommerce ideas

As mentioned, there are also choices for those who want to get outside the box in terms of ecommerce investing in Australia. Businesses that facilitate ecommerce logistics can also be a good choice — examples include companies like Brickworks (ASX:BKW), which builds high-tech warehouses for Amazon and Coles Group (ASX:COL).

What's the outlook for ecommerce in Australia?

In its Australian Retail Outlook 2021 report, KPMG declares 2021 the year of retailing, stating, "The pressure on retailers to remain relevant in the eyes of the consumer has never been stronger."

The rapid pivot to online buying and selling during COVID-19 caught some retailers by surprise, but many of them have since harnessed their ecommerce capabilities and begun to thrive. Experts expect growing trends such as click-and-collect, same-day delivery and digital payments to continue, bringing further opportunities for investors.

Don't forget to follow @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.

light bulb with stock chart
Khakimullin Aleksandr / Shutterstock

"I'm no market forecaster, but part of me suggests this could get worse before it gets better," said Rick Rule of Rule Investment Media.

Rick Rule: Gold, Oil and Gas, Coal, Water — Commodities for Now and Later

As the broader markets face volatility, what is investor and speculator Rick Rule doing with his money?

Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference, Rule, who is proprietor at Rule Investment Media, said he sees the current circumstances as an opportunity.

"What bear markets really are is sales, and if you think that sales are good, then these are good," he said. He has a shopping list ready and is looking for places he can scale in, but did urge listeners to proceed with caution.

read more Show less
physical coin representing bitcoin

A Canadian fund provider is debuting a version of its popular bitcoin ETF in Australia. Is now the best time for this launch?

Australian investors are getting a new way to invest in the volatile bitcoin space thanks to a deal between an asset management company and a Canadian fund provider.

On May 12, Canadian fund maker Purpose Investments launched a version of its bitcoin exchange-traded fund (ETF) in the Australian market by way of a partnership with Cosmos Asset Management, which is owned in part by the Australian division of Mawson Infrastructure Group (NASDAQ:MIGI).

The fund, called the Cosmos-Purpose Bitcoin Access ETF (CXA:CBTC), is listed on the Cboe Australia exchange, and holds units of the Toronto-based Purpose Bitcoin ETF (TSX:BTCC).

“We have brought together a team of global experts to offer Australian investors access to a truly high-quality product,” Dan Annan, Cosmos Asset Management CEO, said in a statement to investors.

ETF maker pursues rising international interest in cryptocurrencies

In an interview with the Investing News Network (INN), Vlad Tasevski, chief operating officer and head of product at Purpose Investments, said the firm has been actively pursuing ways to offer its crypto funds internationally.

The executive said there has been widespread interest in BTCC since its launch back in February of last year.

As the firm began evaluating how to approach this demand, the company considered setting up shop in the Australian market, Tasevski said. However, eventually the Canadian fund provider went with the partnership route.

Tasevski called Australia “the next logical jurisdiction" for the firm as it expands with its crypto funds.

When asked what makes Australia so attractive for the expansion of BTCC, the executive said it has a similar market structure to Canada, and credited securities regulators in the nation for being more comfortable with cryptocurrency listings than other jurisdictions.

Purpose has strong long-term outlook for digital assets

Although crypto assets are facing a serious ongoing downturn in value that has created significant losses, Tasevski told INN that Purpose Investments is undeterred in its long-term crypto outlook.

“The amount of capital and the amount of people involved in the space has never been higher,” Tasevski said.

The executive said he views his company's offerings as very flexible for investors. “We'll be here for (investors) to actually give them the ability to very easily access it whenever they feel it is appropriate for them,” he said.

Tasevski added that he views the current downturn for bitcoin as “one of the best entry opportunities in the last year and a half.”

​As bitcoin struggles, ETF firm celebrates structural victory

Purpose Investments has suggested to investors that accessing the bitcoin market through its funds is a safer route than going it alone, especially given the current period of remarkable losses.

According to Tasevski, the firm's products offer liquidity to investors and provide a measured approach for people who want exposure in this segment.

“We have been very clear that this is a volatile asset class,” he told INN. “And investors should kind of understand the level of volatility that they will be taking on.”

The investment executive said the infrastructure security provided by the rules ETFs must follow has been a boon as the crypto space faces major volatility.

Even so, BTCC has been rocked in 2022 based on the performance of bitcoin. Over a year-to-date period, the fund had gone down in value by over 35 percent as of the closing bell in Canada on May 11. In the past month alone, BTCC has dropped in value by over 20 percent.

Som Seif, founder and CEO of Purpose Investments, recently said crypto is a “core component” for the firm “when solving problems for (its) customers.”

​Investor takeaway

Digital assets have never been more easily available as tools for all types of investors.

While many experts remain confident in the long-term outlook for bitcoin and other cryptocurrencies, the considerable volatility prevailing in the market can make the space difficult for newcomers to stomach.

So far in 2022, bitcoin losses have highlighted the lack of stability in digital coins — but of course, as some have argued, these big moves can also provide entry points and opportunities for savvy investors.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

European Lithium Executive Chairman Tony Sage

European Lithium Executive Chairman Tony Sage said, “There's not one hydroxide plant in Europe, so we hope to be the first. Not only would we be able to source material from our own mine, but we may be able to source material in nearby areas.”

European Lithium Executive Chairman Tony Sage: Developing the 1st Lithium Hydroxide Plant in Europe

European Lithium (ASX:EUR,FWB:PF8) Executive Chairman Tony Sage discussed the company’s Wolfsburg project in Austria, a country with a rich mining history dating back to WWII that maintains its infrastructure.

Wolfsburg continues that tradition, positioned only 45 kilometres from the city that hosts the largest Samsung battery factory.

"It’s quite unique. In Europe, a lot of the lithium mines are at the exploration stage," Sage said. "This mine was built back in the '80s by the Austrian government. So all the work has been done. If we were going to do this project today, we would have to get environmental approval and spend about $100 million — but they did all the work and the licence is in perpetuity.

“We can now access that mine and start mining immediately. In fact, in 2017, we mined it and took out 1,500 tonnes, which is a massive advantage in the lithium industry because we were able to build a pilot plant and put 300 tonnes of the material through the pilot plant, which gave us the results that we were looking for in that it's high-grade product.”

Sage also discussed European Lithium’s goals with the project. “Our aim is to mine it. It's a very simple mining process. We're in the process now of trying to acquire land nearby so we can actually put a conversion plant and a hydroxide plant on it. There's not one hydroxide plant in Europe, so we hope to be the first. Not only would we be able to source material from our own mine, but we may be able to source material in nearby areas.”

Sage told the Investing News Network that the government is supportive of its endeavours. “The Austrian government is very keen for us to build hydroxide plants so they can actually entice vehicle companies to build a factory nearby the hydroxide plant. This way, we can have a mine right through to the battery solution for the Austrian government. In the end, all we can do is get the mines up and operating, build the hydroxide plant and see what happens.”

The mine itself is underground. “Underground mining techniques are used all around the world. When they built it, they actually overbuilt — so when we decided to mine back in 2017, it was quite easy for us to find the seam of the orebody and then take the ore out," Sage said.

“We completed a prefeasibility study in 2018. The cost structure then was about US$7,500 per tonne to produce the hydroxide. Right now, the hydroxide price is around US$69,000 a tonne — that’s a massive profit margin that we don’t see as sustainable long term. When we do our definitive feasibility study, we're probably going to use an average price over the life of mine of about US$25,000 — but that's still a huge profit margin. That feasibility study is coming within the next four months, when we’ll be in a good position to partner with someone.”

Watch the full interview of European Lithium Executive Chairman Tony Sage above.

Disclaimer: This interview is sponsored by European Lithium (ASX:EUR,FWB:PF8). This interview provides information that was sourced by the Investing News Network (INN) and approved by European Lithium in order to help investors learn more about the company. European Lithium is a client of INN. The company’s campaign fees pay for INN to create and update this interview.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with European Lithium and seek advice from a qualified investment advisor.

This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.


Top News

Global News