Earthport revenue and payment volume power up
Earthport, a cross-border payments service provider, has reported a massive rise in its number of transactions and payment volume for the six-month period ended 31 December 2016.
The number of transactions reached five million, a growth of about 85% over the prior year period. Payment volume increased by 97% to $7.80 billion and revenue per transaction in the period was £2.70. For H1 FY 2016, this was £3.26. The increase is “predominantly from existing customers” and helped to power its revenues, which grew by 34.9% to £14.3 million.
Gross profit increased by 33.8% to £9.9 million, compared to H1 FY 2016 when it was £7.4 million. Earthport’s gross profit margin decreased by 0.6% to 69.2%.
These positive figures follow on from the period ending 30 June 2016, when its payment volume increased to more than $11 billion, and revenues increased 18% to £22.8 million.
Hank Uberoi, CEO of Earthport, says during this time it expanded its “strategic relationship” with Bank of America Merrill Lynch (BAML) – the deal was originally signed in 2013. BAML’s CashPro offering is using the Earthport network and went live last month.
He adds that it also gained approval to provide outbound payment services for the Indian market. In November 2016, Earthport got approval from the Reserve Bank of India to operate cross-border payment services for banks in India. Axis Bank, India’s third largest private sector bank, is the first bank in the region to connect with Earthport.
