Nuvei’s acquisition of Till Payments comes at a reduced valuation compared to its previous forecast, as seven months ago, Till Payments was valued at 500 million Australian dollars (about $350 million), Fintech Futures reported Thursday (Nov. 17), citing a paywalled article by Australian Financial Review.
Reached by PYMNTS, a Nuvei spokesperson declined to comment on the report. Till Payments did not immediately reply to PYMNTS’ request for comment.
The acquisition comes as a lifeline for Till Payments, which has faced financial challenges in recent times, according to the report.
Till Payments was founded in 2012 by CEO Shadi Haddad to provide payment capabilities to retailers, the report said. Over the years, the company attracted investment, but it burned through its funds and recorded an after-tax loss of 141 million Australian dollars (about $91.3 million) for the fiscal year 2022.
The company cut 40% of its workforce early this year, with Haddad saying the move was made in response to “global inflationary pressure and economic contraction,” per the report.
With the reported acquisition, Till Payments is likely to be broken down for parts and integrated into Nuvei’s technology infrastructure, according to the report.
When announcing a round of Series C fundraising in October 2021, Haddad said Till Payments aimed to meet the demand from businesses for “a revolution in payments — one that’s simple, seamless and considers every consumer touch and data point during the payment experience.”
PYMNTS Intelligence found that consumers are willing to try new payment methods to attain ease and convenience when paying for online purchases and recurring bill payments.
Sixteen percent of consumers switched to a new payment method in the last year, according to “New Payment Options: Building Stronger Customer Ties with Pay by Bank Transfer,” a PYMNTS and Nuvei collaboration.
“When you think about payments, CFOs are focused in three main areas: working capital optimization; money-in or money-out process automation; and reducing risk across the enterprise,” Weiner said.