Payright Shares are up 7% as Growth Momentum Continues (ASX:PYR)

Micro-cap fintech stock Payright Ltd [ASX:PYR] is on the up today.

Payright Ltd [ASX:PYR] Shares are trading 7.25% higher at time of writing. Cooling off slightly, after an even hotter start at the open this morning.

That is bound to please investors, particularly with the share price’s steady decline in recent months. A streak that the company is clearly hoping to snap with some strong momentum.

Let’s take a closer look at what management had to say…

Good growth across all key metrics

As with most fintechs, Payright’s focus is on its core metrics. And from the information they’ve shared today, things are looking very healthy.

For the September quarter, total customers has risen to 59,300. An increase of 58% compared to the same time last year.

Total merchant stores were also up to 3,523 as well, rising by 34%. Meanwhile, fee income hit $3.8 million for the quarter. A 45% increase compared to last September.

However, the big standout was a 72% improvement in Gross Merchandise Value (GMV). With Payright achieving a huge $27.6 million in GMV for the quarter.

And, as co-CEO Piers Redward comments, this result is an endorsement of their ongoing strategy:

Our performance shows strong demand for our merchant products and services, and that consumers are opting to use Payright’s flexible payment arrangements as a more affordable purchase solution.

‘Our strategy of pursuing merchants with higher transaction values continues to gain significant traction. Recent partnerships with Masport, Service Seeking and O’Brien Group Plumbing and Electrical divisions, are seeing us gain market share in the home improvement sector as more consumers become aware of the availability and convenience of the Payright BNPL offering.

‘To further cement our position in this key vertical we are working closely with our growing base of merchants to help promote Payright’s offering and become the preferred BNPL provider for considered purchases.’

How to Limit Your Risks While Trading Volatile Stocks. Learn more.

What’s next for Payright?

As already mentioned, this result is a bright spot in what has been a pretty poor couple of months for Payright. At least in terms of their share price performance.

And while some of this can likely be chalked up to your usual market volatility, the fact remains that they need this kind of growth to turn things around. So investors should be welcoming today’s development with open arms.

The challenge now is for Payright to take things one step further. Not only maintaining this positive momentum, but delivering even bigger and better growth across their metrics.

After all, that is what BNPL stocks are renowned for. An expectation that can deliver huge gains when management meets them, or weigh on a stock if they don’t. As for where Payright will end up, only time will tell…

If however, you’re looking for some more fintech stocks with explosive potential, then we can help. Our comprehensive report on this exciting investment space contains the names of three promising companies trading for under a dollar. Each of which has the potential to rocket higher in the coming months.

For all the details, check out the full report — for free — right here.


Ryan Clarkson-Ledward,
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. Learn all about it here

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:

Money Morning Australia