Nuvei is a Montreal, Canada based fintech company offering payment processing services. It was founded by Philip Fayer and was formerly known as Pivotal Payments. It is Canada’s largest private payment processor.
The pandemic outbreak is the driving force of the increasing adoption of digitalized alternatives for various services and products. We see the most impact on the way people pay for items. Over time, the use of cash was on the decline. Online or digitized payment solutions came to the fore.
Initially, the company offered electronic payment processing to online businesses. Since 2003, it has grown a lot. The company visualizes making the whole world a local market place by providing easy and flexible payment solutions globally.
Nuvei: Business Model
Nuvei offers in-app, in-store, and online payment options integrated with a single platform. The company supports over 450 alternative payment methods and services. Some include end-to-end payment acceptance solutions, streamlined payouts, foreign exchange services, risk management, and value-added business services. It is available in more than 150 currencies and users around the world can carry out transactions with ease.
The company’s revenue is recurring in nature, primarily through various fees that are applicable during a merchant’s transaction. Also, it generates subscription revenue from business intelligence tools, merchant dashboards, and other solutions. Nuvei charges flat subscription fees on a monthly basis.
In 2020, the company enhanced its geographical outreach with the launch of local processing solutions. They were launched in Russia, Singapore, Hong Kong, Brazil, and Colombia. The acquisition of Smart2Pay — a one-stop-shop payment solution set a strong foot in the digital market.
Q3 2020 Financial Results
The increasing demand for online shopping and payment solutions encouraged many tech IPO in recent times. A 5iresearch publication says that Nuvei’s strategically opted for a public listing. The company listed its stock on the Toronto Stock Exchange TSX in September 2020. These IPO proceeds aided the company to repay its debt.
Net loss in Q3 2020 was $77.9 million, against $65.7 million in the third quarter of 2019. The net loss also included $83.4 million non-cash finance costs which resulted from the company’s initial public offering.
Revenue grew 32% in Q3 2020 year over year. The reported figure of $93.6 million in Q3 2020 was higher vis-a-vis $70.8 million in the third quarter of 2019