The Novatti Group Ltd (ASX: NOV) share price is on the rise again today. Novatti shares closed at 44 cents each yesterday. However, they opened at 48 cents this morning and rose all the way to a high of 53 cents. That's a new record for the company. It was a rise of more than 10% at the time. At the time of writing, Novatti shares are trading for 48 cents each, a rise of 6.59%.
Novatti has been in the news recently. Incredibly, the Novatti share price is now up 94% in less than a month. In fact, Novatti was a recipient of an ASX speeding ticket last week when its share price rocketed 38% in one day. At the time, the company claimed it had no idea why its shares were on fire.
But in terms of today's moves, the picture is far clearer.
Novatti announced this morning that a new product is launching that contains Novatti's technology.
Image source: Getty Images
Lifepay to launch in March
This morning before market open, Novatti announced that Lifepay, a "new, innovative fintech platform", would be launching. Lifepay's platform will be run by Lifepay Pty Ltd. Lifepay Pty Ltd is a private company that Novatti has a 25% stake in. According to Novatti, a recent funding round, which Novatti participated in, values Lifepay Pty Ltd at $5.125 million.
Lifepay is a platform that enables its users to manage personal finances and transactions. Customers of Lifepay can do this "simply and effectively" from their mobile device. The platform's services include digital banking (with access to a pre-paid debit card). Additionally, the platform offers payments using services like BPay or tap and go. It also offers a social dimension, enabling easy funds transfers between friends and family.
According to Novatti, the Lifepay launch is initially being restricted to a 'soft launch', with around 200 customers. The full launch is expected to take place "for early March 2021".
How will Lifepay benefit Novatti?
Novatti is set to benefit from this Lifepay platform in a number of ways. Aside from its stake in Lifepay itself, the company tells us that Novatti will, "earn fees from activity on the Lifepay platform, including compliance services, cross border payments, payment acquiring, and the issuing of Visa Prepaid cards, depending on take-up of the service".
Novatti's Managing Director, Peter Cook, had the following to say on the deal:
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. 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.
Judging by the moves in the Novatti share price today, it seems investors have given this deal their blessing.
