62% TPV Growth & Profitable
A competitor to $LSPD $SQ $ADYEY $PYPL and #STRIPE
TPV grew 62% YoY and recorded $ 41M in EBITDA (+59% YoY)
BUT, even after a rebranding, its plagued with NEGATIVE customer reviews
Will it make it?
Here is an EASY thread
A competitor to $LSPD $SQ $ADYEY $PYPL and #STRIPE
TPV grew 62% YoY and recorded $ 41M in EBITDA (+59% YoY)
BUT, even after a rebranding, its plagued with NEGATIVE customer reviews
Will it make it?
Here is an EASY thread
Nuvei $NVEI.TO is an electronic payment processing company based in Canada It went public in Sept. 2020 in Toronto
Today, the company counts over 800 employees, is active in more than 200 markets and processes 450 payment methods in 150 currencies https://www.reuters.com/article/us-nuvei-corp-ipo-idUSKBN25S69X
Today, the company counts over 800 employees, is active in more than 200 markets and processes 450 payment methods in 150 currencies https://www.reuters.com/article/us-nuvei-corp-ipo-idUSKBN25S69X
$NVEI enables merchants to accept all kind of payments (safely & easily) through an acquirer agnostic gateway
Merchants can use Nuvei’s tools for their digital checkout online, on mobile, in-store (at the point of sale) across all platforms and devices
Merchants can use Nuvei’s tools for their digital checkout online, on mobile, in-store (at the point of sale) across all platforms and devices
This is the Payment Service Providers (PSP) and Merchant Accounts Providers (MAP) space
Here is a technical breakdown of PSPs and MAPS in the “A short intermezzo on Stripe and PSPs”-section https://getbenchmark.substack.com/p/adyen-and-the-virtual-economy-boom
Here is a technical breakdown of PSPs and MAPS in the “A short intermezzo on Stripe and PSPs”-section https://getbenchmark.substack.com/p/adyen-and-the-virtual-economy-boom
This space is crowded with global and local alternatives, to name a FEW:
$ADYEY
$SQ
$PYPL
#STRIPE
$LSPD
$FIS
$ADYEY
$SQ
$PYPL
#STRIPE
$LSPD
$FIS
In order to win, $NVEI has filled its tool with features to maximise conversions
“Real-time smart routing” enhances communications with key players (merchant, gateway, acquirers) to speed up transactions
“Real-time smart routing” enhances communications with key players (merchant, gateway, acquirers) to speed up transactions
“Localised pages” for currency management in order to always display the local currency
“Partial approvals” to unlock transactions for users who may lack some funds
“Decline recovery“ to propose a new payment method to customers whose payment did not work
“Partial approvals” to unlock transactions for users who may lack some funds
“Decline recovery“ to propose a new payment method to customers whose payment did not work
This is backed up by robust infrastructure on Nuvei’s side
Nuvei scored an average response time of 0.4 seconds
Only registered 4 minutes of downtime in 2019, good for a 99.999% uptime
Nuvei scored an average response time of 0.4 seconds
Only registered 4 minutes of downtime in 2019, good for a 99.999% uptime
Nuvei looks strong until now!
It has built the full stack of apps and systems required to run payment operation on a global scale
It now serves over 50K customers & exposes itself to organically growing sectors such as online gaming, social gaming and online marketplaces
It has built the full stack of apps and systems required to run payment operation on a global scale
It now serves over 50K customers & exposes itself to organically growing sectors such as online gaming, social gaming and online marketplaces
The online payments market is huge
$SQ expects the “business” market to be worth $ 100B and the “consumers” market to be worth $ 60B
According to Allied Market Research, the global mobile payment market will grow to $ 12T by 2027 Up from $ 1.5T in 2019
$SQ expects the “business” market to be worth $ 100B and the “consumers” market to be worth $ 60B
According to Allied Market Research, the global mobile payment market will grow to $ 12T by 2027 Up from $ 1.5T in 2019
Markets And Markets expects the global payment gateway market to reach $ 87B in 2025 Up from $ 31B in 2016
Mordor Intelligence expects the global gateway market to grow to $ 43B in 2025 up from $ 17B in 2019 For a CAGR of 16%
Mordor Intelligence expects the global gateway market to grow to $ 43B in 2025 up from $ 17B in 2019 For a CAGR of 16%
Frost & Sullivan forecast the Chinese mobile payments market to grow to $ 97T by 2023 From $30T in 2017
Markets And Markets expects the digital payment market to double in size by 2025 to $ 154B from $ 79B in 2020
Markets And Markets expects the digital payment market to double in size by 2025 to $ 154B from $ 79B in 2020
PayPal projects its TAM to be at $110T This represents payment volume (in Q2 ’20, payment volume stood at $222B for $ 5.2 B in sales)
According to eMarketer, the mobile commerce & eCommerce purchase volume is expected to double to $ 6.3T by 2024, up from $ 3.4T in 2019
According to eMarketer, the mobile commerce & eCommerce purchase volume is expected to double to $ 6.3T by 2024, up from $ 3.4T in 2019
That’s what we want A large market evolving towards technology driven solutions
Eating away incumbent’s market share Banks, financing institutions and legacy POS systems
Eating away incumbent’s market share Banks, financing institutions and legacy POS systems
But what makes $NVEI better than other alternatives?
“it’s certainly not the worst company we’ve seen, it doesn’t offer anything special or unique that would help it stand out from the rest of its competitors.”
From Merchant Maverick https://www.merchantmaverick.com/reviews/pivotal-payments-review/
“it’s certainly not the worst company we’ve seen, it doesn’t offer anything special or unique that would help it stand out from the rest of its competitors.”
From Merchant Maverick https://www.merchantmaverick.com/reviews/pivotal-payments-review/
“Nuvei rates as an average merchant services provider according to our rating system.”
“The company’s rebranding does not appear to have included any significant structural changes, so merchants can expect the service and pricing that Pivotal Payments was known for.”
“The company’s rebranding does not appear to have included any significant structural changes, so merchants can expect the service and pricing that Pivotal Payments was known for.”
“Considering that Pivotal Payments was rated as one of the worst merchant account providers in the industry”
From Card Payment Options https://www.cardpaymentoptions.com/credit-card-processors/nuvei/
From Card Payment Options https://www.cardpaymentoptions.com/credit-card-processors/nuvei/
“The positive customer testimonials are far outnumbered by the quantity of complaints, but Pivotal Payments does have a small selection of testimonials on its website.”
From Card Fellow
https://www.cardfellow.com/credit-card-processors/pivotal-payments
From Card Fellow
https://www.cardfellow.com/credit-card-processors/pivotal-payments
Nuvei rebranded itself and was previously named “Pivotal Payments”
Users often complained about Pivotal Payment’s sales tactic as independent sales were in charge of sales
Users often complained about Pivotal Payment’s sales tactic as independent sales were in charge of sales
“Another concern we have with Nuvei is its continued use of independent sales agents. This practice has led to hundreds of complaints across the processing industry”
“[…] today many providers are switching to a full-time, salaried sales staff to improve the quality of the sales experience and retain merchants for a much longer period.”
From Merchant Maverick
Yet, independent sales agents still belong to Nuvei’s Go-To-Market strategy
From Merchant Maverick
Yet, independent sales agents still belong to Nuvei’s Go-To-Market strategy
Financials Check
Sales grew 32% in Q3 ’20 to $ 94m up from $ 71m a year earlier
Total volume processed increased by 62% YoY to $ 11.5B up from $ 7.1B a year earlier
Gross margins at 82%, constant YoY
Sales grew 32% in Q3 ’20 to $ 94m up from $ 71m a year earlier
Total volume processed increased by 62% YoY to $ 11.5B up from $ 7.1B a year earlier
Gross margins at 82%, constant YoY
SG&A expenses reached $ 61m in Q3 ’20, down from $ 63m a year earlier
Adjusted EBITDA reached $ 41m up 59% YoY from $ 26m a year earlier
It has $ 444m in current assets versus $ 365m in current liabilities
Adjusted EBITDA reached $ 41m up 59% YoY from $ 26m a year earlier
It has $ 444m in current assets versus $ 365m in current liabilities
THE BOTTOM LINE
$NVEI is a challenger in the payment solutions race, it has built the stack required to compete in a global scale
Its operations are robust, providing high uptime and is able to scale with additional demand, reflected in the constant gross margins
$NVEI is a challenger in the payment solutions race, it has built the stack required to compete in a global scale
Its operations are robust, providing high uptime and is able to scale with additional demand, reflected in the constant gross margins
Nuvei turned a profit and managed to keep its operating expenses constant
Nuvei suffers from poor customer reviews as users complain about its sales agents’ tactics
Nuvei went through a full rebranding but failed to change its image
Nuvei suffers from poor customer reviews as users complain about its sales agents’ tactics
Nuvei went through a full rebranding but failed to change its image
On a high level, its doesn’t offer any feature that competition doesn’t offer as well
Competition from TIER-1 players such as $SQ $PYPL #STRIPE and $ADYEY required $NVEI to score high on all metrics
We stay on the sidelines
Competition from TIER-1 players such as $SQ $PYPL #STRIPE and $ADYEY required $NVEI to score high on all metrics
We stay on the sidelines
$DHER.DE is on our watchlist To Be Reviewed SOON
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Card Fellow
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Card Fellow
✑ Merchant Maverick
✑ Card Payment Options
✑ Reuters
✑ Merchant Maverick
✑ Mordor Intelligence
✑ Allied Market Research
✑ Markets And Markets
✑ Frost & Sullivan
✑ Card Payment Options
✑ Reuters
✑ Merchant Maverick
✑ Mordor Intelligence
✑ Allied Market Research
✑ Markets And Markets
✑ Frost & Sullivan
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