Repay (RPAY) Stephens 26th Annual Investment Conference | NASH2024 summary

Business overview and value proposition

• Processes payments for both consumer and business clients, embedding financial technology into core software platforms for seamless money movement in the US and Canada.

• 80% of operations focus on consumer bill payments, mainly in auto loans, personal lending, accounts receivable management, and credit unions.

• Owns and operates its own payment ecosystem, providing reliability and control over transactions.

Consumer payments segment

• Operates in verticals such as auto loans, personal lending, ARM, and credit unions, integrating with core software platforms for each.

• Maintains about 175 software relationships, leveraging both direct sales and ISV partnerships for distribution.

• Referral-based partnerships allow for higher gross profit margins (75%-80%) compared to reseller models.

• Supports omni-channel and omni-modality payments, including web, mobile, and text.

Growth drivers and market trends

• Growth levers include new enterprise sales, organic vertical growth, and digital transformation in payment modalities.

• Consumer softness noted in used auto, but improvement in affordability and ARM sector presents future tailwinds.

• Not exposed to credit risk, but macro trends in lending impact transaction volumes.