Promising Future for VersaPay

VersaPay Corporation (TSXV:VPY) is a Toronto-based fintech company that offers cloud-based accounts receivable automation software and integrated payment solutions for businesses. By operating through two segments – VersaPay Solutions and Point of Sale Merchant Services – the company offers electronic invoice presentment, offers value added payment technologies, acts on behalf of financial institutions, and sells physical and electronic point of sale terminals.
Recently, Haywood Securities analyst Pardeep S. Sangha gave the company a “buy” rating with a price target of $1.60. The stock is also rated as high risk, meaning it might hit the sweet spot for some of North American tech market’s bolder investors. The Investing News Network caught up with VersaPay CFO Harp Gahunia to get the inside scoop on the company. Read on to find out what exactly makes this small-cap fintech player so promising.

Strong stats for VersaPay

According to Gahunia, “with over 70 suppliers and slightly short of 23,000 companies on our platform, Versapay has demonstrated significant demand for its end-to-end A/R [accounts receivable] Billing and collection tool.” Essentially, “companies can clearly see how they are benefitting with improved DSO [days sales outstanding] from better communication between suppliers and their customers, having different payment options to pay invoices, and making it easy to send payments.” Accordingly, “suppliers are getting their cash quicker and our solution is integrated into their existing ERP [enterprise resource planning] system.” In the past 3 months alone, the company has grown its supplier count by 65 percent and its customer count by 30 percent.

Future steps

VersaPay isn’t about to rest on it’s laurels. Compared to the company’s traditional point of sale business, the new accounts receivable automation business has “significantly higher margins with predictable recurring revenue streams.” Furthermore, Gahunia also believes “that we have a very sticky product that will keep future churn rates low.”
But there are more developments in the works: “while our initial results prove impressive, the driver for a faster paced growth lies in our ability to strike relationships with potential resellers of our product.” Right now, “Versapay is having quite a few of these types of discussions that have the potential of increasing our sales velocity.”

Market at large

In a larger sense, VersaPay sees itself as a vibrant part of the broader fintech and cloud computing sectors. Gahunia tells us that “thanks to blockchain, mobile commerce and increased capabilities and service reach through cloud based services, attention on fintech has grown to become a buzzword within the financial world.” This means that “companies both large and small, financial institutions, telcos, and non-traditional entrants such as Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) are all entering the fintech space with their own solutions trying to solve perceived problems.”
Gahunia continues: “while there is space and room for all of these companies to grab a share in the market, the best of breed companies with strong management teams and robust platforms will emerge dominant through consolidation, innovation and flawless execution.” So how does VersaPay fit in? The company “is building dominance in the billing and collection space, has a development roadmap to maintain its first-mover advantage for many years to come, and will grow both organically and through acquiring technologies that compliment our offering. We believe we have the right team in place to own our space.” It’s up to investors, if they want to join this growing team.