Tyro Share Price Up on IPO: What’s Tyro’s Edge? ASX:TYR

By ,

Shares of ASX newcomer, Tyro Payments Ltd [ASX:TYR], are up significantly on their indicative IPO price of between $2.50–2.75, trading at $3.51 at time of writing.

You can see how the first hour of trading went for the Tyro share price below:

asx tyr share price

Source: tradingview.com

We look at what Tyro’s competitive advantage is after its IPO. Despite expecting a fourth consecutive annual loss next year, their success may hinge on their ability to become a neo-lender.

Tyro share price up significantly in first hour

As you can see, the Tyro share price was quick out of the blocks once trading commenced at midday.

Clearly, investors were pretty enthused about the company.

But what does the future hold for Tyro?

Tyro’s success may hinge on their ability to convert EFTPOS buyers into business loans

Some key facts about Tyro:

  • Australia’s largest EFTPOS provider
  • 29,000 businesses on the books
  • $17.5 billion in transactions in 2019, generating $189.8 million in revenue
  • Morgan Stanley valued the company at between $1.5 and $2.1 billion in October
  • IPO values Tyro at a market cap of $1.25–1.36 billion
  • 450 employees

In addition to their EFTPOS products, they offer e-commerce solutions, bank accounts, and business loans.

So despite their initial appearance as an Aussie Square Inc [NYSE:SQ] clone, these last two strike me as where the real growth in Tyro’s business could come from.

That is, its ability to capitalise on the 29,000 businesses it already has sales interactions with.

Tyro may well morph into a neo-bank and a neo-lender down the track.

This could prove to be Tyro’s competitive advantage.

And its ability to transform may also impact some blue chip ASX companies — bank stocks in particular.

For instance, National Australia Bank Ltd [ASX:NAB] has an edge in the business loan market with a 21% market share.

This is one of the few aspects of its business that is going well at the moment.

But make no mistake, the first signs of the collapse of the Big Four empire are starting to show.

And it is possible that companies like Tyro will accelerate this process.

We take a look at three of the most exciting fintechs in this free report, one of the picks is up 53.57% in a 12-month window.


Lachlann Tierney,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX, including fintechs. This week we discussed cyber security stocks and the rapid rise of Vault Intelligence Ltd [ASX:VLT]. It’s up nearly 60% in a year. Learn all about it here. Best of all, it’s free.

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

Tyro Payments Share Price Bounces Back on Big Boost to Profits

The share price of payments company Tyro Payments Ltd [ASX:TYR] has bounced back today upon the release of their half-yearly results.

Chaotic Day for Tyro Shares Ends in Trading Pause (ASX:TYR)

At time of writing, shares of Tyro Payments Ltd [ASX:TYR] are in a trading pause, having last traded down nearly 12%, or $2.32. Having shown some promising signs since March on a relatively strong Australian economy, the TYR share price went into free fall today…

Tyro Payments Share Price Up on Partnership (ASX:TYR)

The Tyro Payments Ltd [ASX:TYR] share price is up more than 7%, to trade at $4.21. The TYR share price bounced strongly off the March market lows and is now registering some positive upwards momentum…

What to Make of the Tyro Payments Share Price (ASX:TYR)

It has been far from smooth sailing for Tyro Payments Ltd [ASX:TYR], but data from June is beginning to paint a more positive outlook. The TYR share price is up .3% today, as the ASX threatens to shed more this week…

Tyro Shares Crumple as Market Tests Investor Resolve (ASX:TYR)

It’s been a savage day of trading for Tyro Payments Ltd [ASX:TYR]. At time of writing the TYR share price is down 12.11% and still falling. One of the worst performers out of a handful of fintech stocks getting hammered today. Which begs the question, is it time for investors to get out while they still can?

Tyro Share Price Rides ASX Wave Up on Rare Good Day 

Today we look at Tyro’s trading update, their cash balance, and the impact of COVID-19 on their business. We then examine the outlook for the Tyro share price in light of its 75% drop in the space of just over a month.