Friday , September 30, 2022

Exploding Online Business Helps Fuel ‘Strongest Growth’ in Nuvei’s History

With the first anniversary of the coronavirus crisis having been reached in the United States, payments processors are reporting strong results as consumers shift to e-commerce, many for the first time. The latest is Nuvei Corp., which on Wednesday reported fourth-quarter results that reflected what the 18-year-old processor called “the strongest growth in the company’s history.” Volume for the quarter totaled $13.9 billion, up fully 53% from the same period in 2019. For the year, volume shot up 76% to $43.2 billion.

Propelling much of this growth was online business, which accounted for about 80% of volume for the quarter and 76% for the year, Montreal-based Nuvei reported. New business in this sector almost tripled in the quarter. “As we look to 2021, we remain excited about the opportunity ahead of us with the momentum of our current customers and the strength of our new business pipeline,” Philip Fayer, chairman and chief executive, said in a statement. The company changed its name in 2018 from Pivotal Payments and went public in September.

Recently completed acquisitions are also playing a role in that expansion. In November, Nuvei closed on its deal for Netherlands-based Smart2Pay Technology & Services B.V., a specialist in what the company sees as several high-growth markets, including so-called social gaming and online marketplaces. Then, in January, Nuvei completed its acquisition of Tempe, Ariz.-based Base Commerce, which brought an ACH processing platform and expanded Nuvei’s acquiring portfolio. Terms of the deals were not announced.

With new business as well as the acquisitions, the company is now projecting total volume for the year in the $81 billion-to-$87 billion range, potentially double the business it saw in 2020.

For the year, revenue totaled $375 million, up 52% from 2019.  Revenue for the quarter came to $115.9 million, a 46% increase year-over-year.

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