QuickFee builds momentum with strong December quarter

QuickFee builds momentum with strong December quarter

Proactive Investors

Published

QuickFee Ltd (ASX:QFE) has built momentum for a robust year driven by key steps taken in the December quarter of 2020 to consolidate its position. During the quarter, which is also the second quarter of the company’s FY2021, the company made progress in hiring for key positions and launched its products in important markets to support the growth momentum. Lending in Australia continues to be impacted by government stimulus measures – down 50% to A$6.9 million (Q2 FY20: A$13.9 million) although November and December showed improvement over October as Job Keeper and other stimulus measures start to unwind. QuickFee Instalments launched During the quarter, the company launched ‘QuickFee Instalments’ in Australia and the US and has already secured 170 firms. The new interest-free, no recourse product will substantially increase QuickFee’s addressable market, while at the same time allow it to provide payment solutions to low credit risk customers using pre-authorised client credit. This was a significant milestone, with the product expected to significantly accelerate QuickFee’s growth, particularly in the US. QuickFee CEO Bruce Coombes said: “We are extremely excited to have now launched the QuickFee Instalments product. “This product complements our existing professional services funding offerings and will significantly increase our target market in the US and Australia. “We expect the ‘no recourse’ aspect of this product to have wide appeal to the US professional services market while the pre-authorisation attribute of the offering ensures we continue to operate with very low levels of credit risk. “With this technology build now live and an extensive recruitment program for sales and marketing staff largely complete, we are very well-positioned for an aggressive roll-out of the QuickFee Instalments product in the US and Australia.” Momentum in US market The company’s momentum continues in the US despite a recent volatile political environment and increasing economic impacts from COVID-19. Modernising of the US market and the acceleration of the shift to online payments brought about by COVID-19 has continued to contribute to huge growth in platform transaction values, up 161% over the previous corresponding period to US$157.4 million in Q2 FY21. In the US market, lending went up by 44% for the first half of FY21 compared to the corresponding previous year. The number of US active firms continued to grow, up 14% to 469 firms over the past six months. QuickFee US processed US$0.5 billion of pay in full transactional values in 2020, with the annual run rate now over US$0.7 billion. Key appointments for US market QuickFee has appointed Eric Lookhoff, a highly accomplished fintech and payments leader, as president of its operations in the US. Lookhoff has more than 25 years of experience in leading scale initiatives at early and hyper-growth stage payments and lending fintech companies. The company has also appointed Sue Torgerson as chief experience officer. According to QuickFee, she brings a wealth of experience with professional services firms, having worked as director of strategic initiatives for the past 14 years at Wolters Kluwer Tax & Accounting in the US. During the quarter, the company has filled seven new sales and marketing roles in the US aimed at accelerating sales growth. Coombes said: “In January we also finalised two key senior executive hires in the US who bring extensive payments and professional services experience to the team and will underpin our market, customer and product growth strategies. “We welcome both Eric and Sue and look forward to their contribution to our growth. Lending momentum in the US continued despite challenging external factors. “Platform transactions are exceeding expectations, driven by the shift to online payments, and we continue to win new firms and increase usage within our existing customer base. “Lending in Australia remains challenging, but we remain optimistic that as stimulus measures unwind, we will be well-positioned for a return to growth.”

Full Article