With the growing convergence of technology and financial services, the fintech segment is quickly becoming one of the fastest evolving sectors around. The companies with their background in financial services are in a prime position to enhance their services by leveraging new technological innovations.
First Global Data Ltd. (TSX-Venture:FGD) is a Canadian company which primarily offers its services for peer-to-peer money transfers.
However, now it has pivoted to capture the mobile payment market as well. It is also focusing on expanding its services globally to achieve successful diversification of its portfolio of services.
The company has largely consolidated its position in the segment in 2016. It took various steps to enhance its presence in the market including the international ones. During the third quarter of the previous year, it launched its services in India.
The move is likely to give a major boost to the company’s operations as India is one of the largest markets for digital cash products. The country is currently undergoing a demonetization move, which further enhances the attractiveness of the market.
First Global Data reported that it has registered 22% week-over-week growth in India for new customers, while its transaction volume has increased at an average of 20% on a week over week basis. Its mobile payment system is now accepted at various utilities including toll stations.
The company is on solid ground as its overall growth for the third quarter was pegged at 18% on a week-over-week basis, leading to 2,869% growth in its transaction volume in the quarter. The company’s solid performance during the quarter is further corroborated by its financial numbers.
First Global Data announced higher revenue for the quarter and stated that the company turned profitable again in the quarter. The company’s stock grew an impressive 562% during the past year with shares currently slightly off its 52-week high.
The company is active in other international markets as well. It has started the Hidase Telecom initiative in Ethiopia. It also has 21 money services licenses in the United States and collaborates with over 250 banks located in 97 countries globally. Currently, the company is focusing on forming relationships with big enterprise clients in these countries.
First Global Data has different brands in its portfolio. Its First Global Money services deals with consumer to consumer money transfer services while the company’s mobile payment services are handled under its PayQwik brand.
Things are definitely off to a great start for the Company in 2017, now we’ll watch to see if the impressive growth can continue going forward.
