QuickFee (ASX:QFE) Launches QUBE Technology Platform, Forecasts Improved Profitability – The Market Herald

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  • QuickFee (QFE) Officially Launches its Proprietary Merchant Acquiring and Payments Platform, QUBE, with Improved Profitability Now in the Company’s Sights
  • The company spent 18 months developing the platform, which offers a “seamless point-of-sale payment gateway,” according to CEO and Managing Director Eric Lookhoff.
  • QuickFee says it has already seen strong growth in the number of merchants and active customers over the past year, with that growth expected to become more profitable thanks to QUBE
  • With the launch of QUBE, QuickFee expects annual operating costs to decrease by $4 million to $4.5 million in fiscal year 2023 compared to fiscal year 2022
  • Nonetheless, today’s news did little to move QuickFee’s share price, with the QFE trading in gray at 12 cents per share at market close.

QuickFee (QFE) has officially launched its proprietary merchant acquiring and payments platform, QUBE, with improved profitability now in the company’s sights.

The fintech firm announced to investors this morning that the long-awaited platform is live after approximately 18 months of development.

“We began development of QUBE in October 2020 as part of our buy now, pay later (BNPL) partnership announcement and subsequent capital raise,” said Managing Director and CEO Eric Lookhoff.

“Over the next year and a half, we expanded the system not only to include our BNPL offering, but also to consolidate and modernize our Automated Clearing House (ACH), card and lending systems.

“This now includes a fully integrated front-end merchant application platform with automated underwriting, risk management and onboarding processes.”

He said the company began migrating from its legacy platform to QUBE in February, with the final stage of that change expected to be completed by the end of May.

QuickFee first announced the BNPL partnership with SplitIt (SPT) in September 2020.

In addition to its range of installment payment capabilities, QUBE offers a fully automated online merchant application platform and automated risk and merchant underwriting management. Additionally, the technology offers merchant integration and merchant branding with white label configuration options.

All of this means merchants have a “seamless point-of-sale payment gateway,” according to Lookhoff.

“Merchants benefit from a single interface to accept and manage payments while providing their customers with multiple, easy-to-use, secure payment options,” he said.

“QuickFee benefits from the flexibility, stability, and redundancy of multiple integrated partners, as well as the improved economics that come with market competition and price scale.”

Improved margins for QFE?

With operations migrating to the new QUBE platform, QuickFee said it expects annual operating costs to drop by $4 million to $4.5 million in fiscal year 2023 compared to fiscal year 2022. For FY22, the company expects operating expenses of between $20 million and $20.5 million.

The QuickFee chief said the company has already seen strong growth in the number of merchants and active customers for its technology, with the number of merchants increasing 24% in the first half of fiscal 2022 and active customers growing. by 38%. This resulted in an increase in total transaction value of 48%.

Now, with the launch of QUBE, Lookhoff said the company’s cost base for scaling all network volume has improved “immediately”.

“With lending rebounding in the US and AU regions, continued strong growth in payments and our BNPL merchant portfolio continuing to grow, this not only means our growth is accelerating , but that we can now more efficiently generate increased margins and profits.”

Still, despite the company’s confidence in the future capabilities of its QUBE platform, today’s news did little to move QuickFee stock price.

QFE shares ended the day in the gray at 12 cents apiece in a market capitalization of $26.7 million.