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MoneyMe IPO: Aussie fintech shares jump 38% at listing

Customer paying for her coffee by mobile payment

The newest payment stock on the ASX has soared above its IPO price.

It seems every other day a new Aussie fintech is making plans to go public, some with more successful results than others.

On Thursday, Australian loans and payments company MoneyMe (MME) was the latest to list on the Australian Securities Exchange (ASX) following a successful $45 million IPO.

Founded in 2013, the company is best known as a personal loans provider, but it has recently stepped into the digital payments space with the new buy now pay later (BNPL) platform ListReady and a virtual credit card.

Also read: What is an initial public offering (IPO)?

By market close on Thursday, its shares had risen to $1.72, over 37% higher than its IPO price of $1.25.

The stock's success comes on the heels of Tyro Payment's IPO, which has seen its shares rise by more than 34% above its IPO price since listing last week.

What is MoneyMe about?

MoneyMe is an Australian digital consumer credit company and non-bank lender with around 80,000 customers and $340 million in written loans under its belt. More recently, it launched a BNPL platform for real estate industry professionals along with digital-only credit card Freestyle.

The company says it plans to use the shareholder funds to pursue "growth opportunities" as people move away from credit products towards online and mobile payment options.

"MoneyMe has always had a focus on innovation and technology, which it used to find a fresh take on its products. This includes its millennial-focused loan products which launched its business and now its newly launched virtual credit card," said Finder's global fintech editor Elizabeth Barry.

"MoneyMe’s virtual credit account combines elements from credit cards as well as buy now pay later, namely convenient spending and interest-free terms. The card is also truly virtual, living in your smartphone and ready for you to tap and pay," she said.

Virtual credit cards are also fairly scarce in Australia, compared to overseas, as Barry noted, meaning there could be room to grow.

"We don’t have other options that could be a big competitor to a product like this, such as the Apple Credit Card. However, it’s an innovative product for Australians to consider," said Barry.

Listed fintechs in Australia

The last 12 months saw a surge of activity among Australia's listed fintech and digital payment stocks.

With shares in BNPL darlings AfterPay (APT) and Zip Co (Z1P) soaring 130% and 243% in the past 12 months alone, there's been a spike of interest in the broader sector from investors.

Payment firms Tyro (TYR), Splitit (SPT) and Sezzle (SZL) all launched onto the stock market in 2019, while Melbourne-based firm Openpay is set to list next Monday just ahead of Christmas.

Payment companies listing on the ASX in 2019

CompanyASX CodeListing date
MoneyMe LtdMME12/12/2019
Tyro PaymentsTYR6/12/2019
Splitit PaymentsSPT29/1/2019
Openpay GroupOPY16/12/2019* (Pending)
Latitude FinancialLFS19/10/2019 (Cancelled)

Source: ASX | 12 December 2019

With so many payment stocks coming on board, it's clear that listed fintechs will need to have an edge to stand out. The question investors will be asking now is whether MoneyMe's virtual card and BNPL platform is enough to go the distance.

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