Propell Holdings Shares Jumps on Square Partnership (ASX:PHL)
Propell has a digital, cloud-based platform that offers tailored finance products aiming to help small to medium businesses manage their cash flows backed by products such as business insights, payments, and lending.
The Square partnership saw the Propell Holdings [ASX:PHL] shares gain 40% at time of writing.
Despite today’s big spike, PHL shares are down 45% over the last 12 months.
Will the involvement of Square see Propell’s fortunes change?
PHL partners with Square
Propell today announced it has partnered with global omnichannel payments business, Square.
Propell said the partnership will give businesses of all types access to one of Australia’s most used payments tools.
PHL aims to work with Square to provide e-commerce payments to businesses in industries like retail, food and beverage, hair and beauty, professional services, and home and repair.
The company notes that this partnership will have a domestic focus initially, with scope for global expansion in shared markets.
PHL said the addition of Square on the Propell platform will give Propell customers greater flexibility in getting paid, while improving both the user experience with their end customer as well as their cash flow.
Head of Partnerships for Square in Australia Shawn Johnson said:
‘Square’s core principle is to help businesses of all types and sizes participate and thrive in the economy.
‘Whether online, in person, or both, we make it simpler for businesses to take payments, access capital to support their growth or use tools to help run their business.
‘Partnering with Propell enables businesses on the platform to have greater choice of how they get paid, but also gives them the ability to make the most of our powerful online payments capabilities.’
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What does the Square partnership mean for Propell?
Under the partnership agreement, Propell will receive a percentage of each payment that Propell app users put through the Square payment services. This may include online and EFTPOS payments.
PHL said the percentage amount it’s set to receive is ‘broadly in-line with that received from Propell’s existing integrated external payments suppliers.’
Subject to the technical and commercial roll-out, Propell expects the arrangement will start to have a material impact on payments revenues in 1–2 years.
Propell CEO Michael Davidson commented:
‘I am delighted to be announcing our platform partnership with Square, which we are confident will further improve the Propell platform and customer proposition, underpinning continued growth.
‘A key focus at Propell is to help our customers to better understand and manage their finances and provide access to products and services to improve their cashflow. The partnership with Square will help enable these improvements.’
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The report outlines three promising Aussie fintechs with exciting potential.
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