OLB Group Inc (OLB)

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OLB Group: Promising New Technology Initiatives

The company delivered strong results and is adding new many features to its platform


Financial technology solutions providers like The OLB Group Inc. (NASDAQ:OLB) witnessed their fair share of struggles in the early months of the Covid-19 pandemic, when most brick-and-mortar retail businesses were badly hit due to the lockdown. The number of transactions processed fell despite the strong adoption of e-commerce solutions by traditional retailers. However, there has been a strong revival in this segment over the past quarter with the lockdown restrictions being lifted and more and more consumers going back to traditional retailers and merchants. This has resulted in a marked improvement in the financial position of OLB Group. The payment ecosystem provider has implemented some strong technological initiatives and could prove tob e a compelling investment opportunity for microcap investors.

Financial results

OLB Group reported its results for the third quarter on Nov. 13, where the company reported revenue of $2.3 million, which was a strong 15% improvement from the second quarter. This was a result of lifting the lockdown restrictions, resulting in greater consumption of its payment offerings by smaller merchants who have seen a significant revival in commercial activity.


The company reported an earnings loss of 11 cents per share and an Ebitda loss of $227,764 for the nine-month period, but this was largely a result of the heavy stock-based compensation expenses for the recent $6.4 million public offering that the company carried out through Aegis Capital. The company's adjusted Ebitda was $157,748 for the past nine months. The company should see an ongoing recovery over the next quarters as its electronic payment processing solutions start being used more frequently with the revival of small and medium-sized businesses in the U.S.

Technological advancements

OLB Group has a strong presence across a wide variety of merchants, which does not only include traditional brick-and-mortar retailers but also e-commerce retailers, restaurants, bars, service companies and many other businesses. It provides a wide variety of payment processing solutions to these SMBs through its three fully-owned subsidiaries, i.e., eVance Inc., Omnisoft.io Inc., and CrowdPay.us Inc. The company is working toward increased automation to ensure that SMBs can facilitate quick payments and have lower labor costs while minimizing the impact of human error. The company has integrated a number of new features into its SecurePay platform, which includes digital check processing and deposits through the use of an automated clearing house. As per OLB's management, the ACH-based offering is more cost-effective than card-based transactions and allows businesses to have strong flexibility through the ease of movement of funds as well as strong control over cash flows and operating costs.

Another key feature that the management recently added to the SecurePay platform is the integration with Quickbooks. Intuit's (NASDAQ:INTU) Quickbooks is easily one of the most popular software programs in the market for maintaining businesses' accounting books. Through its integration into SecurePay, merchants are not required to leave the QuickBooks platform to perform tasks like invoice generation and receiving payments. This adds a significant amount of efficiency into their system through seamless invoice generation and reduces the time taken for payments. These new initiatives are meant to make the company's offerings highly competitive as compared to larger peers like Square (NYSE:SQ) and Shopify (NYSE:SHOP) and help them onboard a large merchant base in the coming months.

Capital raising for SMBs

OLB Group's offerings are not restricted to just payment processing and invoicing through SecurePay. The company's ecosystem also extends toward providing financial support to SMBs in the tough business environment through its CrowdPay.us platform. Through this proprietary crowdfunding platform, OLB Group's customers can raise funds through various means such as debt, equity, reward-based funds and donations.

The company seeks to provide a launchpad to small businesses through this platform to expand their operations while allowing investors to participate in the growth of these companies. CrowdPay was acquired by OLB Group in 2018 to widen its suite of offerings. It is a complementary offering along with ShopFast, the company's equivalent of Shopify, which helps SMBs establish an e-commerce presence.

Final takeaways

OLB Group can easily be termed as a comprehensive payment ecosystem for American SMBs. Its improving results and strong technological advancements are major green flags and the stock is valued at $3.8 and has a price-sales ratio of 2.14, which is well below most of the listed fintech companies in the market. It is worth highlighting that the company has existing relationships with thousands of merchants across the U.S. and has the ease of cross-selling the new technology offerings such as CrowdPay and ShopFast as well as future launches. Overall, OLB Group is poised for exceptional growth in the near future.