QuickFee boosted by strong pickup in lending
QuickFee's share price jumped on Friday after the payment solution provider announced that the company has seen a marked increase in lending activity in Australia in the past two months.
March and April were successively the highest lending months in the 2021 financial year, reflecting the cessation of Australian government stimulus. April lending hit a new high for FY21 at $3.5 million, up 30% on the previous highest month in FY21, signalling encouraging signs for a recovery in the local business following the end of the JobKeeper stimulus.
QuickFee’s US PayNow volume for the month of April 2021 was a record US$76.4 million, up 13% on the previous record month of March 2021, taking the company’s Total Transactions Volume annualised run rate to over US$900 million. Traditional financing in the US remains broadly in line with the previous quarter’s run-rate, as US government stimulus continues to weigh on lending growth.
The QuickFee Instalments product performed strongly in April 2021, particularly in the US where a total of US$180k was processed, up almost 600% on the previous month, and is reflective of strong new merchant signups, and growing demand for this product. 445 and 191 merchants now signed up in the US and Australia, respectively.
The fintech company also told investors that US investment bank, D.A. Davidson was appointed to secure expanded funding lines to support the expected growth in QuickFee’s loan book.
Commenting on recent progress, Bruce Coombes, CEO, said: "We remain very excited about the growth in our payments platform in the US and the scale that we are building. As we increase our focus on both new merchant sign-ups and existing merchant usage, we expect to see ongoing growth in transaction volumes and further scale benefits. Also, very pleasing has been the strong pickup in lending in Australia and the early uptake of the QuickFee Instalments product, with April showing very impressive growth in the US.”