Repay (RPAY) UBS Global Technology and AI Conference summary

Addressable market expansion

• Total addressable market (TAM) grew from $535 billion in 2019 to over $5.2 trillion, driven by eight acquisitions and entry into new verticals like mortgage, credit unions, and B2B payments.

• B2B payments now represent a significant portion of TAM, with lower penetration and higher growth potential than consumer payments.

• Digital transformation post-COVID continues to drive demand for frictionless, embedded payment solutions across both consumer and business segments.

• Opportunity exists to monetize non-card payment volume, expanding beyond traditional card-based transactions.

Software and ISV partnerships

• Over 275 ISV partners, with about 100 focused on business payments and the rest on consumer payments.

• Embedded financial technology in partner platforms enables omni-channel payment solutions and drives go-to-market success.

• Referral-based relationships with ISVs allow for higher gross profit margins and greater share of economics.

• Monetization opportunities exist in both AP and AR, requiring a fully integrated platform for all payment types.

• Growth is driven more by deeper penetration within existing ISV partners than by adding new ones.

Business mix and segment outlook

• Current mix is approximately 80% consumer and 20% business payments, with ambitions to grow the business segment.

• Business payments offer wide open growth potential, especially in verticals like healthcare, property management, and auto.

• Consumer segment trends are normalizing, with some softness in auto and ARM verticals, but expected to recover as macro conditions improve.

• Business segment growth has been impacted by corporate spending slowdowns and implementation delays, but reacceleration is expected through enterprise software integrations and enhanced ACH monetization.