The Novatti Group Ltd (ASX: NOV) share price is sinking today despite the company announcing its collaboration with LITT.
At the time of writing, the digital banking and payments company's shares are down 6.4% to 43.5 cents.
Based in Australia, LITT is a fintech and social hybrid app that connects people through e-commerce, advertising, and digital payments. Users can earn digital cash by watching ads put out by local businesses on their newsfeed.
Basically, the company shares its advertising revenue with its members instead of social media influencers solely making money through posting content.
Image source: Getty Images
What did Novatti announce?
The Novatti share price is falling despite delivering a positive update to the ASX market.
In today's release, Novatti advised that it has added LITT to its ecosystem, creating additional revenue streams.
The company will provide LITT members with access to digital Visa Prepaid cards and instore and online payments networks. This is expected to push the interaction between social media and daily life transactions.
The collaboration will see Novatti earn revenue from project set up, transactions, and card-issuing services.
While the company did not disclose the revenue amount projected, it reminded investors that it was focusing on achieving growth. This encompasses its recently launched Lifepay and its Visa Prepaid cards which Apple Pay is now supporting.
More on LITT
LITT has more than 18,000 members and 500 local businesses in its growing portfolio.
Just last month, when Facebook banned news content in Australia, the company saw an 83% increase in new member sign-ups. Local business registering on the platform jumped 85%, highlighting a gap in the market.
Words from the managing director
Novatti's managing director Peter Cook commented:
Novatti's collaboration with LITT is another example of how we are creating new potential revenue opportunities by leveraging our existing digital banking and payments ecosystem.
This ecosystem has now helped propel several new and innovative businesses, including Novatti's Digital Payments Accelerator, Lifepay, with its commercial launch last week, and now LITT.
Each of these opportunities has tapped into Novatti's digital banking and payments ecosystem to bring an innovative new product to market quickly. They also further Novatti's strategy of connecting to new payment networks to drive overall growth while continuing to increase Novatti's B2C exposure.
About the Novatti share price
The Novatti share price has accelerated to more than 330% since this time last year. The company's shares increased sharply from the middle of February after strong investor hype.
Based on the current share price, Novatti has a market capitalisation of around $98 million.
