Payments & KYC fintech, revolutionising how businesses can reduce fraud and increase sales

Live The Payment App Pty Ltd

The Payment App Pty Ltd | Equity Crowdfunding

Equity Crowdfunding Type of Offer
$9.3 millionPre-money Valuation
$250 Minimum Investment
Up to $1 million Size of Offer

Min. reached - now targeting $1.0 million

126%

$315,808

Raised

3%-10%

Equity

174

Investors

Closes in

1d
1h
1m
1s

​Please consider the offer document and general risk warning before investing.

Investors are entitled to a 5 day cooling-off period.

Investments over $10,000 are restricted to Sophisticated investors - Apply here

Key Investment Highlights

  • The Payment App (TPA) is a fintech company that’s developed a suite of payment services, a proprietary payment gateway and data engine to help Australian business sell more while at the same time reducing fraud.
  • The backbone of the company’s technology stack is its payment gateway technology, which is complemented by an AI-driven data rich engine.
  • Large addressable global markets with $8.4 billion mobile commerce transactions in Australia alone, as well as $286 billion spent on Big Data acquisition globally and $220 billion spent in markets where TPA will have its own payment apps.
  • Proprietary technology that generates revenue from payment services, payment apps and data-as-a-service.
  • Proven market traction with Clipp which has been in market since 2014
  • Strong customer pipeline committed via service agreements & pilot programs.
  • $0.35 million already committed from sophisticated and professional investors in this funding round.
  • Roadmap to a liquidity event in the next 24 to 36 months.

Introduction

The Payment App (TPA) is a fintech company that’s developed a suite of payment apps, a proprietary payment gateway, and a data engine to help Australian business sell more while at the same time reducing fraud.

The Payment App’s vision is to move beyond the “transaction” to create a better payment “experience”. By providing businesses with access to more data and consumers with a better and easier way to pay, TPA strives to create a more tailored experience for the customer, resulting in more satisfied customers and businesses.

In a world where more than 40% of online transactions are made using a mobile device, global demand is rapidly growing for payment gateway software. Pioneers such as PayPal and Square have opened up the marketplace. But there is an opportunity to take online payments to the next level.

The global spread of COVID-19 has only accelerated the use of “tap-and-go” mobile payments. In Australia, the move towards becoming a cashless society has been hastened by warnings about potentially contaminated cash. In the post-COVID-19 economic recovery, the shift to online payments, including “tap-and-go” mobile payments, will be swift and extensive.

The Problem

The current market is characterised by simple payment technology providers that facilitate online payments.These companies are extremely limited in the types of transactions they can process as well as the data-driven,“value-add” functionality that can simultaneously reduce the incidence of non-payment and fraud.

No complex Transactions

Payment software is currently two-dimensional and doesn’t allow for more complex transactions such as bill-splitting or buy-now, pay later options. As transactions become more complex, there is a need for more comprehensive software to manage the complexity of modern transactions.

Security limitations

Some payment software doesn’t take responsibility for “Know Your Customer” or “Anti Money Laundering” screening. As cyber criminals become more sophisticated, the need for instant verification of payments will be critical.

No customer data

Transactions have the potential to create a rich source of data, but most companies record very little detail about the transactions. There is significant potential to record more data about transactions that can produce business intelligence.

Transactional – no customer “experience”

Better data allows businesses to tailor the customer experience. This is an area with significant growth potential as the data can be used to build an end-to-end customer experience.

 

 

The Payment App

The Payment App will change the way in which consumers, merchants, brands and financial institutions interact with each other. Purchasing relationships with merchants have changed, becoming more complex and moving away from the cash register.

Our collaborative approach has created an API driven, machine learning platform offering an innovative and mutually rewarding way for consumers and merchants to interact.

Fast, cashless payments

Frictionless, fast, cashless payments. On demand, or prepaid with push or pull payment mechanics allows users to capture the best buy, pay later or split with friends.

POS integration

POS integration eliminates friction and enables 1:1 dynamic pricing mechanisms from merchants or brands to leverage inventory & time as marketing mechanics.

1:1 deal engine

1:1 deal engine allows merchants or brands to target users by location or demographic with relevant deals to drive sales, clear inventory or push traffic.

Payment gateway

Our payment gateway provides a platform for fast and secure payments in real time with a depth of transactional data not currently provided by existing companies.

Big data

We provide rich and smart consumer behaviour, and purchase data incorporating demographics utilising the SKU data that we capture from our POS integrations.

 

 

 

Market Potential

Business Model

The Payment App has developed three core business units that have the potential to scale quickly and extensively.

Payment Services

The company’s payment gateway and other payment services can be integrated by any merchant (bricks and mortar store, ecommerce website or mobile app).

TPA charges a monthly subscription for their payment services, in addition to a fee of between 3-5% for every transaction. The more companies using TPA’s payment services the more recurring revenue the TPA generates.

Payment Apps

TPA has also developed its own payment apps and formed joint venture companies with other businesses to deploy payment apps in specific markets. The payment app pathway to market allows for mass connectivity to key industry sectors spanning petrol, real estate, alcohol and labour hire. The payment apps have their own individual business strategies and growth potential.

Data-as-a-Service

Over time the data generated by TPA’s data engine will become valuable to merchants and others. TPA will ultimately offer data-as-a-service to companies seeking information about existing and potential customers to tailor offerings more closely to customer needs and wants. Data will be provided on a subscription basis as well as one-off reports.

TPA's Payment Apps

Clipp

Clipp allows hospitality patrons to pay for food and drinks in bars, restaurants and hotels. TPA acquired the Clipp IP and brand in June 2020, and we have commenced re-development of the App ahead of a planned re-launch post COVID-19 restrictions.
Since 2014 and prior to TPA’s acquisition, Clipp has generated $27.5 million in revenue from 350,000 transactions and acquired 130,000 users.

Fill

Fill stops Australians being ripped off by the petrol industry. Fill helps users find cheaper fuel every day, from any brand of petrol retailer through intelligent mechanics, then pay on their mobile contactlessly. Users can lock in a cheap price and pay later, buy on demand or pre-buy a spot price special pushed out by a petrol retailer.

Shift

Shift helps businesses access extra staff to cover rostered shifts at short notice. Shift Staff matches available and qualified staff via in App job ads. Shift Staff then supplies the staff as a labour hire agency handling all payroll requirements on behalf of the business needing their shifts covered.

Rentive

Rentive allows renters to control their rental payments, rental history and rental applications from their smartphone with payments via credit card, Paypal, eftpos or direct debit. In Australia, $40 Billion in rent is paid per annum from 59.8 million fortnightly payments.

Investio

Investio enables conscientious and ethical investment opportunities in the green, sustainable, renewable and bio-investment spaces at a micro level and beyond. In the last two years, growth globally in sustainable investments grew 30.4% to $30.7 Trillion.

Traction

  • Unikorn Investments - Unikorn Investments is a commercial property fund that facilitates fractional ownership in commercial real estate. TPA has secured a 24 month exclusive contract to provide payment gateway, KYC and AML payment services and data services
  • Clipp - TPA is poised to benefit from their recent acquisition of Clipp due to the pivot to 100% cashless payments across the hospitality sector due to COVID-19. TPA also manages Clipp’s payment gateway and provides payment and data services. Clipp has previously generated revenue of $27.5m since 2014.
  • Data Zoo - Australian data and identity verification company Data Zoo has contracted TPA to provide data services to supplement and augment their product suite.
  • Barclays MIS - Leading residential and commercial property collections and debt recovery business Barclay MIS has engaged TPA to provide key payment services to support their business back end.

Revenue Model

The Payment App is a data driven, payment services company that generates revenue from payment transaction services, advertising, subscriptions and data services.

By developing integrated business intelligence with machine learning, The Payment App is able to provide merchants, brands and interested businesses with a unique transactional based engagement solution.

Subscription Fees

Annual or monthly subscription fees paid by merchants for the use of The Payment App payment gateway, payment services, merchant and data services. Merchants using The Payment App’s own B2C and B2B apps may also pay subscription fees for some services within those Apps.

Transaction Fees

Transaction Fees apply to our payment gateway and payment services. Merchants availing themselves of the business growth opportunities which flow from our B2C and B2B payment apps also pay a 3-5% commission on the user transactions which placed through those apps.

Data Fees

The Payment App earns data revenue from merchants, financial institutions, brands, industry suppliers & interested third parties on various models: subscription for regular updated data sets, one off data sets, packaged reports & customised services, eg. credit enquiries, KYC/AML searches, identity verification & validation.

Advertising

The Payment App derives advertising revenue from advertisements served to users of our B2C and B2B apps, and from product promotions delivered by brands for fulfilment and redemption via merchants through our B2C and B2B apps. Potential advertising partners include brewers, imported beer brands, petrol retailers, confectionery brands, grocery brands, insurers, banks etc.

Terms of the Offer

Under this CSF raise the Company is offering up to 1,572,327 Shares at an issue price of $0.636 each to raise up to $1,000,000.

Issued Capital

Use of Funds

Off the back of keen customer interest and executed service agreements, The Payment App is seeking investment to commercialise and bring to market its technology in Australia.

Management and Board

Allan Evans

Managing Director/CEO

28 years experience in tech, telco and advertising.

CEO of Clipp, Founder & CEO of The Solution Engine and BNB Works.

Director, General Manager and senior management roles at Telstra Corporation Ltd,  Leading Edge Group Ltd, Huawei Technologies and Crazy Johns Mobile Phones.

Bachelor of Business, University of South Australia.

Benjamin Banks

Founder/CIO/Director

Co inventor of the patent  PCT/AU2013/000333  payment apparatus and method.

20 years of technology, financial services and bank-related services.

Global experience in payments, risk analysis and monitoring. 

CEO of Payment Network International, CEO of PNI Financial Services.

Pauline Clark

Chairperson

35 Year International Business Experience, spanning the Building industry engineering, global acquiring and Product development.

Entrepreneurial with strong business development experience.

President of Waitara Associates, developing solutions for financial services, specializing in Ecommerce.

Global Omni Commerce Specialist in Payments.

Nikesh Lalchandani

Non-Executive Director

Over 25 years in finance and payments in Banks and Startups - some of which are now owned by Multinationals.

Former executive in Payments and Emerging Technology at CBA, with extensive experience and strategic experience in financial technology across many organisations. 

Payment technology and operations, transformation, Blockchain, emerging technology, strategy & architecture, technology leadership.

Studied Engineering, Computer Science, Dip Financial Services, MACS CP, MAICD.

Anthony Owen

Non-Executive Director

25 years experience in tech startups, ASX Director and CEO.

Former Founder and CEO at Manalto Limited.

Currently Consultant in OnMarket Brisbane office.

Software, AI and ML, Global Expansion, Cloud distribution, GTM Strategy.

Master Degree, UNSW.

Brent Charlton

Chief Financial Officer

Accountant in public practice for over 20 years.

Partner of accounting and financial planning firm for over 10 years.

CEO of Altitude Advisers Group for the last 3 years.

Chartered Accountant, Bachelor of Business, Graduate Diploma in Applied Finance.

Lucas Cullen

Chief Technology Officer

25 years Software Development/Engineering.

Software Engineering Team Leader BoQ, Senior Developer ConsenSys. 

Former Board Member Blockchain Australia, Founder Civic Ledger.

Contracted by Singapore Monetary Authority, JP Morgan, ATO.

Steve Milburn

Tech Project Manager

35 years business experience spanning finance, hospitality and IT.

Business Banker CBA, Support Engineer TSA , Operations Manager Civic Ledger.

Director DLTx.

Company Risks

The company is an early stage business, on the cusp of disrupting international industry sectors. The opportunity is significant, but there is a degree of risk associated with any early stage company seeking to break into competitive markets. This includes but is not limited to contractual risks associated with performance thereto obligations to time and quality of work performed, reliance on core information technology and other systems, limited operational history, intellectual property risk and the Company may need to obtain additional funding if there are changes to operations requirements, market conditions or business opportunities.

See section 2.23 of the Offer Document for further discussion.

The Offer is subject to a Maximum Subscription amount of $1,000,000. If the Maximum Subscription is reached, the Offer will close early. Applications will be treated on a time priority basis and may be subject to scale back, so please fund your application as soon as possible

 

IMPORTANT: Please read the below information before investing in this Equity Crowdfunding offer.

RISK WARNING:  Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks. You may lose your entire investment, and you should be in a position to bear this risk without undue hardship. Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you.

Even though you have remedies for misleading statements in the replacement offer document or misconduct by the company, you may have difficulty recovering your money. There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform becomes insolvent, you may have difficulty recovering your money. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.

5 DAY COOLING OFF PERIOD: There is a 5 business day cooling off period for retail investors. During this period, you may withdraw your application and receive a full refund into your nominated refund account. Please note: After the 5 day cooling off period has expired, you will be unable to withdraw your application. More information here.

ONMARKET FEES: Upon successful completion of the Offer, a maximum fee of 6% of the funds raised will be paid to OnMarket by the Company.

ONMARKET INTERESTS: OnMarket and its associates may be participating in this offer.

ONMARKET INTERESTS AND AMOUNTS SUBJECT TO COOLING OFF: The funding bar displayed under each crowd funding offer may include applications where payments are yet to be made and amounts that are subject to the cooling off period.

Section 734(6) disclosure: The issuer of the securities isThe Payment App Pty Ltd ACN 635 080 849. The securities to be issued are fully-paid ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

Question time

We'd love to answer your questions, we'll have one of the OnMarket team or the company representative of the offer get back to you asap. So ask away ...

Shares

Does this mean if I subscribe I am buying shares at $0.636 per share?

Rus W (OnMarket member) on 30/06/2020

Hi Rus, yes share price is $0.636 each.

Allan E (The Payment App Pty Ltd representative) replied to Rus W on 30/06/2020
Liquidity Event

Where can I find more information about the roadmap to a liquidity event in the next 24 to 36 months mentioned in the Key Highlights above?

Jack I (OnMarket member) on 01/07/2020

Hi Jack, happy to have a conversation with you about that. If you'd like to reach out to the team at On Market they can pass on my details to you and we can have a chat about it. Cheers, Allan.

Allan E (The Payment App Pty Ltd representative) replied to Jack I on 02/07/2020
Issue price in relation to potential future IPO pricing

Hello Allan, thank you for your responses to date on this page. My question is around the value of shares at the above stated issue price ($0.636) versus potential future IPO pricing. I've noticed a pattern of IPO issue price around $0.20 and was just wondering how confident investors at the equity crowdfunding stage can be that later stage pricing will be at, or preferably above, the $0.636 in this current offer? Cheers.

Zoran V (OnMarket member) on 09/07/2020

Hi Zoran, it's hard for me to comment about other IPO issue prices without knowing the history of the pricing relating to their issued capital and the valuations of their businesses.... In general, you would hope an IPO issue price would be greater than what existing shareholders had paid - especially if the purpose of the IPO was for a liquidity event. It's hard to say whether around $0.20 represented a valuation premium for those businesses and at that price what upside the existing shareholders would see. You would hope, if not expect that it would but it's very much a case by case scenario. I hope that helps you. Please feel free to reach out to me through OnMarket if you'd like to have a direct conversation. Cheers, Allan

Allan E (The Payment App Pty Ltd representative) replied to Zoran V on 13/07/2020

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Equity Crowdfunding Live

The Payment App Pty Ltd

The Payment App Pty Ltd
Payments & KYC fintech, revolutionising payment services to increase sales and reduce fraud

 

RBA’s 2019 Consumer Payments Survey highlighted that the number of Australians that use cash for transactions continues to fall. In 2018, there was $8.4 billion of mobile commerce transactions in Australia as well as $184 billion spent on global Big Data acquisition in 2019.  COVID-19 has shown that consumers will willingly accept and embrace digital payments, and with that there is a need to have a cashless society where there is a rich ecosystem of data and payments interacting.

 

The current market is characterised by simple payment technology providers that facilitate online payments. These companies are extremely limited in the types of transactions they can process – no complex transactions, security limitations, no customer data.

 

The Payment App’s vision is to move beyond the “transaction” to create a better payment “experience”. Providing businesses with access to more data and consumers with a better and easier way to pay, TPA creates a more tailored experience for the customer, resulting in more satisfied customers and businesses.

 

Before investing please consider the offer document and the general risk warning.

Min. reached - now targeting $1.0 million

126%

$315,808

Raised

3%-10%

Equity

174

Investors
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