🚨 62% TPV Growth & Profitable 🚨

⚡️ A competitor to $LSPD $SQ $ADYEY $PYPL and #STRIPE

📈 TPV grew 62% YoY and recorded $ 41M in EBITDA (+59% YoY)

🚩 BUT, even after a rebranding, its plagued with NEGATIVE customer reviews

Will it make it?

Here is an EASY thread 👇
Nuvei $NVEI.TO is an electronic payment processing company based in Canada 🇨🇦 It went public in Sept. 2020 in Toronto

✅ Today, the company counts over 800 employees, is active in more than 200 markets and processes 450 payment methods in 150 currencies https://www.reuters.com/article/us-nuvei-corp-ipo-idUSKBN25S69X
Payment tech firm Nuvei files for $500-$600 million IPO in Canada

Montreal-based payment technology firm Nuvei Corp filed for an initial public offering in Canada on Tuesday to raise about $500 million to $600 million, according to a source familiar with the plans.

https://www.reuters.com/article/us-nuvei-corp-ipo-idUSKBN25S69X
$NVEI enables merchants to accept all kind of payments (safely & easily) through an acquirer agnostic gateway

💳 Merchants can use Nuvei’s tools for their digital checkout online, on mobile, in-store (at the point of sale) across all platforms and devices
This is the Payment Service Providers (PSP) and Merchant Accounts Providers (MAP) space

📝 Here is a technical breakdown of PSPs and MAPS in the “A short intermezzo on Stripe and PSPs”-section https://getbenchmark.substack.com/p/adyen-and-the-virtual-economy-boom
Adyen And The Virtual Economy Boom 💸

Your Easy Briefing on Under-Hyped Stocks 👀

https://getbenchmark.substack.com/p/adyen-and-the-virtual-economy-boom
🌐 This space is crowded with global and local alternatives, to name a FEW:

$ADYEY

$SQ

$PYPL

#STRIPE

$LSPD

$FIS
In order to win, $NVEI has filled its tool with features to maximise conversions

⚡️ “Real-time smart routing” enhances communications with key players (merchant, gateway, acquirers) to speed up transactions
🌐 “Localised pages” for currency management in order to always display the local currency

🔐 “Partial approvals” to unlock transactions for users who may lack some funds

🛍 “Decline recovery“ to propose a new payment method to customers whose payment did not work
This is backed up by robust infrastructure on Nuvei’s side

⏱ Nuvei scored an average response time of 0.4 seconds

⚡️ Only registered 4 minutes of downtime in 2019, good for a 99.999% uptime
Nuvei looks strong until now!

✅ It has built the full stack of apps and systems required to run payment operation on a global scale

📈 It now serves over 50K customers & exposes itself to organically growing sectors such as online gaming, social gaming and online marketplaces
🌐 The online payments market is huge

1️⃣ $SQ expects the “business” market to be worth $ 100B and the “consumers” market to be worth $ 60B

2️⃣ According to Allied Market Research, the global mobile payment market will grow to $ 12T by 2027 📈 Up from $ 1.5T in 2019
3️⃣ Markets And Markets expects the global payment gateway market to reach $ 87B in 2025 📈 Up from $ 31B in 2016

4️⃣ Mordor Intelligence expects the global gateway market to grow to $ 43B in 2025 up from $ 17B in 2019 📈 For a CAGR of 16%
5️⃣ Frost & Sullivan forecast the Chinese mobile payments market to grow to $ 97T by 2023 📈 From $30T in 2017

6️⃣ Markets And Markets expects the digital payment market to double in size by 2025 to $ 154B 📈 from $ 79B in 2020
7️⃣ PayPal projects its TAM to be at $110T 📈 This represents payment volume (in Q2 ’20, payment volume stood at $222B for $ 5.2 B in sales)

8️⃣ According to eMarketer, the mobile commerce & eCommerce purchase volume is expected to double to $ 6.3T by 2024, up from $ 3.4T in 2019
That’s what we want ✅ A large market evolving towards technology driven solutions 👨‍💻

Eating away incumbent’s market share 👉 Banks, financing institutions and legacy POS systems
But what makes $NVEI better than other alternatives?

1️⃣ “it’s certainly not the worst company we’ve seen, it doesn’t offer anything special or unique that would help it stand out from the rest of its competitors.”

From Merchant Maverick 👇 https://www.merchantmaverick.com/reviews/pivotal-payments-review/
Nuvei Review 2021 (Formerly Pivotal Payments) | Complaints

Looking at Nuvei for payment processing? Read our Nuvei Review to see if the complaints from Pivotal Payments reviews have improved.

https://www.merchantmaverick.com/reviews/pivotal-payments-review/
2️⃣ “Nuvei rates as an average merchant services provider according to our rating system.”

“The company’s rebranding does not appear to have included any significant structural changes, so merchants can expect the service and pricing that Pivotal Payments was known for.”
“Considering that Pivotal Payments was rated as one of the worst merchant account providers in the industry”

From Card Payment Options 👇 https://www.cardpaymentoptions.com/credit-card-processors/nuvei/
Nuvei Review: Fees, Complaints, Lawsuits, & Comparisons

A rebrand of Pivotal Payments, Nuvei is a large merchant account provider that provides credit card processing for all standard-risk business types. We have located more than 300 negative Nuvei...

https://www.cardpaymentoptions.com/credit-card-processors/nuvei/
3️⃣ “The positive customer testimonials are far outnumbered by the quantity of complaints, but Pivotal Payments does have a small selection of testimonials on its website.”

From Card Fellow 👇

https://www.cardfellow.com/credit-card-processors/pivotal-payments
👉 Nuvei rebranded itself and was previously named “Pivotal Payments”

🚩Users often complained about Pivotal Payment’s sales tactic as independent sales were in charge of sales
“Another concern we have with Nuvei is its continued use of independent sales agents. This practice has led to hundreds of complaints across the processing industry”
“[…] today many providers are switching to a full-time, salaried sales staff to improve the quality of the sales experience and retain merchants for a much longer period.”

From Merchant Maverick

🤯 Yet, independent sales agents still belong to Nuvei’s Go-To-Market strategy
💸 Financials Check 💸

📈 Sales grew 32% in Q3 ’20 to $ 94m up from $ 71m a year earlier

💳 Total volume processed increased by 62% YoY to $ 11.5B up from $ 7.1B a year earlier

⚙️ Gross margins at 82%, constant YoY
💎 SG&A expenses reached $ 61m in Q3 ’20, down from $ 63m a year earlier

💵 Adjusted EBITDA reached $ 41m up 59% YoY from $ 26m a year earlier

💰 It has $ 444m in current assets versus $ 365m in current liabilities
👇 THE BOTTOM LINE 👇

✅ $NVEI is a challenger in the payment solutions race, it has built the stack required to compete in a global scale

✅ Its operations are robust, providing high uptime and is able to scale with additional demand, reflected in the constant gross margins
✅ Nuvei turned a profit and managed to keep its operating expenses constant

🚩 Nuvei suffers from poor customer reviews as users complain about its sales agents’ tactics

🚩 Nuvei went through a full rebranding but failed to change its image
🚩 On a high level, its doesn’t offer any feature that competition doesn’t offer as well

🚩 Competition from TIER-1 players such as $SQ $PYPL #STRIPE and $ADYEY required $NVEI to score high on all metrics

🔥 We stay on the sidelines 🔥
🔮 $DHER.DE is on our watchlist 👉 To Be Reviewed SOON 🔮

Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.

Sources

✑ Investor presentation

✑ Company website

✑ Card Fellow
✑ Merchant Maverick

✑ Card Payment Options

✑ Reuters

✑ Merchant Maverick

✑ Mordor Intelligence

✑ Allied Market Research

✑ Markets And Markets

✑ Frost & Sullivan
Hope you liked this thread!

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