In this month's 'Stock-of-the-Month' edition, we're looking at a grossly misunderstood Payments Provider - OxPay Financial. It really caught our attention first and foremost because it is currently 'loss-making' primarily due to the RTO expenses (it went IPO by reverse takeover of Artivision). Secondly, it has a wonderful business model - acquire merchants -> higher recurring revenue from Total Payment Volume.

Why not before, Why now?

Since FY2018, OxPay has increased its focus from referral fees to acquiring merchants directly. This had a pivotal impact on the Group’s businesses as it not only gives OxPay higher margins but also greater control over its merchants and increases the speed of onboarding new merchants. Together with the introduction of more payment methods and the scaling up of usage by some of its clients, the Group saw a more than 5-fold increase in its MPS revenue to S$7.9m in the financial year ended 31 December 2019. This trend is set to continue with the group's onboarding of many more reputable merchants over time (Watsons, Q&M Dental, Mango etc). All in all, it is really a hidden gem that is under-covered by analysts and we expect it to fly amid strong growth drivers. Download the pdf below to read the case study now! OxPay Financial - Rise of the Digitalisation of Payments