Here's why the QuickFee (ASX:QFE) share price is zooming 28% higher

The QuickFee Ltd (ASX: QFE) share price has rocketed 28% today following a positive business update. We take a closer look at what was announced.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The QuickFee Ltd (ASX: QFE) share price is by far one of the best performers on the ASX today. This comes after the company provided investors with a market update for its operations in April.

During mid-morning trade, the financial technology company's shares are fetching for 32 cents, up 28%.

A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

QuickFee achieves record growth

Investors are fighting to get a hold of QuickFee shares today following the company's explosive trading update.

According to its release, QuickFee advised that lending activity in Australia is continuing to surge. Both March and April recorded the highest lending months in the FY21 period following the end of the JobKeeper stimulus. In particular, April lending reached $3.5 million, up 30% on the previous highest month in the current financial year. QuickFee stated that it is seeing encouraging signs for a recovery in the local business sector.

In the United States, the company processed US$76.4 million in its US PayNow market for April. This represented an increase of 13% on the previous record month of March 2021. As a result, the total transaction value (TTV) is sitting at an annualised run rate of US$900 million.

QuickFee noted that traditional financing in the United States is relatively in line with the Q2 FY21's run rate. The federal government's stimulus package is continuing to weigh down on the company's lending growth.

Positively, QuickFee Instalments are gaining pick up in the United States, with volumes in April at US$180,000. Again, this reflects a 600% jump on the performance attained in March.

New merchant signups are climbing with the company recording 445 and 191 merchants in the United States and Australia, respectively.

What did the head of QuickFee say?

QuickFee CEO, Bruce Coombes hailed the company's strong progress, saying:

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.

About the QuickFee share price

Despite today's meteoric gain, the QuickFee share price has tumbled close to 40% year-to-date. In comparison, the All Ordinaries Index (ASX: XAO) has gained around 7%.

Based on today's price, QuickFee commands a market capitalisation of roughly $62 million, with approximately 201.5 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

asx share price resignation represented by man kicking miniature man through the air
Financial Shares

Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here's why

Australian Ethical has made a major ESG call on this large business.

Read more »

two dogs, a golden one and a black one, together carry a stick in their mouths as the run side by side with contented, happy looks on their faces.
Broker Notes

2 ASX 200 shares to rocket from same booming industry: expert

Most sectors will struggle when the economy slows down, but maybe not this one.

Read more »

Woman looking at her smartphone and analysing share price.
Financial Shares

AMP shares drop then pop amid ex-dividend and delay of $225 million sale

The sale of Collimate Capital's domestic leg looks to be split in two amid regulatory delays.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Dividend Investing

Why is the AMP share price sinking today?

In announcing its full year financial results, the AMP board declared a dividend payout for the first time since 2020.

Read more »

A woman shows her phone screen and points up.
Financial Shares

Hub24 share price up 9% on record half-year results and turbocharged dividend

The financial services provider is flying high today on the back of stellar results.

Read more »

Woman relaxing and using her Apple device
Financial Shares

For $1,000 in monthly passive income, buy 1,770 shares of this ASX 200 stock

This ASX blue chip could unlock enormous passive income for investors.

Read more »

Woman on her laptop thinking to herself.
Financial Shares

Are AMP shares finally cheap enough to buy following Thursday's 13% crash?

A return to dividend hasn't convinced this top broker.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

QBE share price leaps 10% amid explosive dividend growth

QBE boosted its final dividend payout by a whopping 58% from the prior year.

Read more »