Very Interesting Article about PYDS
By Kristen Mosbrucker
– Reporter, San Antonio Business Journal
7 hours ago
San Antonio-based Payment Data Systems Inc. plans to scale its proprietary technology and is focused on software developers adopting its tools.
The software — called Pay-Fac, which is short for payment facilitator — is a payment processing tool for businesses. It enables businesses to open merchant accounts and accept automated clearing house payments and credit cards online. Payment Data Systems then charges a flat fee for the amount processed.
"It is the largest driver for top-line revenue growth for 2019 and the foreseeable future," Vaden Landers, Payment Data Systems' chief revenue officer, told the Business Journal. "Our target customer is a software or app developer who has a piece of technology that needs to accept payments to downstream users."
Payment Data Systems (Nasdaq: PYDS) is a competitor of San Francisco-based Stripe, which sells access to its application program interface, or API, for developers to accept payments online. It has been in the electronic bill pay business since the late 1990s and sees opportunity to capture some of Stripe's market share.
Payment Data Systems inked deals with two real estate industry customers recently: Ohio-based TenantMagic, which sells property management software, and Bellevue, Washington-based PropVIVO, which sells homeowners association management systems. The company also sees opportunity in health care, insurance and even nonprofits for soliciting donations.
Currently, the company is able to process payments for U.S.-based businesses that receive foreign currency, but not international companies. In the coming year, plans include making the business more of a worldwide competitor.
"Right now we are working on expanding our capabilities to do some international" payment processing, Landers said.
Payment Data had processed more than $3.4 billion in transactions on behalf of businesses as of September 2018, up from $2.8 billion in 2017, according to an investor presentation in October 2018. Its stock was trading at about $1.87 per share on midday Jan. 9, down from its 52-week-peak of $2.50 per share in January 2018.
