ASX Paytech Stocks: 5 Biggest Companies in 2023

1. Block

Market cap: AU$36.67 billion

Founded in 2009, Block (ASX:SQ2) is a global leader in fintech based in California, US, that aims to make the economy more accessible. In December 2021, Block officially changed its name from Square to incorporate its many facets — it is currently composed of Square, Cash App, Spiral, TIDAL and TBD. Each of Block's subsidiaries provides a means of expanding the economy by giving individuals and companies tools to participate.

Square enables entrepreneurs and businesses to sell with tap-enabled tiles that are powered by mobile technology, instead of requiring a typical clunky point-of-sale system. Cash App allows users to send, receive and invest money effortlessly. Spiral gives out grants for users to "get paid in Bitcoin to work in Bitcoin." TIDAL is a global music, podcast and video-streaming platform built to personalise the listener's experience and give artists due credit for their work. Lastly, TBD is developing a decentralised open-source platform and infrastructure.

In January 2022, Block completed its acquisition of the once-leading ASX fintech company Afterpay, which allows shoppers to pay in four interest-free payments instead of all at once.

2. Zip

Market cap: AU$338.25 million

Zip (ASX:ZIP) is another popular buy now, pay later company headquartered in Sydney, Australia, and New York City, US. The paytech company was founded in 2013 and operates in Australia, New Zealand and the US. In 2022, Zip reported AU$620 million in revenue, an increase of 57 percent from the year prior.

3. Sezzle

Market cap: AU$100.19 million

Sezzle (ASX:SZL) is a buy now, pay later option that listed on the ASX in 2019. Often dubbed the "mini-Afterpay," the business is based in Minneapolis, US, and has been trying to make "just Sezzle it" happen since it formed in 2016. The company serves customers mostly in North America, but in 2021, it began operating in Brazil as well.

In February 2022, Sezzle announced an agreement to be acquired by Zip; however, the deal was terminated that July.

4. Novatti Group 

Market cap: AU$44.74 million

Novatti Group (ASX:NOV) is a multi-service payment provider for businesses with year-over-year revenue growth of around 76 percent for each of the past five years. Its customer base is roughly half fintech companies and banks and half traditional merchants and businesses. Novatti has licences to operate in Australia, New Zealand and Canada, and is working to obtain licenses in Europe and Singapore.

In January 2022, Novatti acquired Malaysia-based ATX Fintech Holding. This acquisition allowed the company to expand across the Southeast Asian market.

5. Spenda 

Market cap: AU$26.38 million

Spenda (ASX:SPX), formerly Cirralto, is a transaction services business that supplies a broad range of B2B payment services and a fully integrated digital payment and business software solution. It aims to help businesses improve their processes and payment terms by offering software-as-a-service, payment and lending services.

Spenda’s 2022 financial year was strong, with a 156 percent increase in revenue and a 128 percent boost in customer growth. In Q4 of the company's 2023 financial year, cash receipts from customers grew 75 percent compared to the year-ago period to reach AU$1.2 million.