The Tyro Payments (ASX: TYR) share price has gone up 14% today. It’s soaring.
What is Tyro Payments?
Tyro is a technology company that provides payment solutions and business banking products. It is partnered with over 32,000 Australian merchants. In the first half of FY20 the company processed $11.1 billion in transaction value which generated $117.3 million in revenue. It also originated $37.4 million in loans and held merchant deposits totalling $39.7 million. It was founded in 2003 and now it’s the fifth largest merchant acquiring bank by number of terminals in the market.
What did Tyro Payments announce?
The payment business has temporarily changed to a weekly transaction value update due to the impacts of COVID-19.
In January 2020 Tyro said it experienced 27% growth. In February it saw 30% growth. In March it saw 3% growth.
In April to 3 April the company saw a 23% decrease to $0.102 billion. However, different days can produce different transaction value totals, so when comparing the same April day (rather than date) compared to last year saw a 37% decline.
We’re only a few days into April, so the April year to date growth is still showing 26% growth to $16.38 billion. But don’t forget, revenue growth is not the same as profit growth.
I’m not sure I can say if Tyro Payments is worth considering or not. It hasn’t been listed long enough to get a good feel of the business and this COVID-19 period is unprecedented. How will a payments business perform? There may be easier investments to think about, like these three technology shares:
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.
