How Smartpay’s Bold NZ Expansion Shapes Its 8.5% Revenue Growth
Smartpay has reported an 8.5% rise in consolidated revenue for FY2025, driven by growth in Australia and a bold entry into New Zealand’s acquiring market. However, investments in technology and market expansion have weighed on EBITDA.
- Consolidated revenue increased 8.5% to $104.7 million
- EBITDA declined to $16.6 million due to $4.9 million investment in New Zealand and platform upgrades
- Pilot launched for New Zealand acquiring solution late in FY2025
- Acquisition of New Zealand competitor’s customer contracts expanded scale and workforce
- Focus on leveraging proprietary technology for trans-Tasman payment market growth
Revenue Growth Amid Economic Challenges
Smartpay has delivered a solid financial performance for the year ending 31 March 2025, with consolidated revenue rising 8.5% to $104.7 million. This growth was primarily driven by the Australian acquiring market, where transactional revenue increased by 8.4% year-on-year despite a challenging economic backdrop. The company’s core payment solutions continue to resonate well with customers, underpinning this steady expansion.
Strategic Investment in New Zealand Market Entry
While revenue grew, Smartpay’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell to $16.6 million from $21.3 million the previous year. This decline reflects a deliberate $4.9 million investment in establishing a foothold in the New Zealand acquiring market. Late in the fiscal year, Smartpay commenced a pilot of its New Zealand acquiring solution, marking a significant milestone in its trans-Tasman growth strategy.
Further bolstering its New Zealand presence, Smartpay acquired customer contracts from a local terminal competitor, adding scale and bringing on board new employees to support deployment efforts. This move not only expands Smartpay’s market share but also enhances its operational capacity in the region.
Technology Modernisation as a Foundation for Growth
In parallel with geographic expansion, Smartpay has invested in modernising its core platforms and technology infrastructure. The rollout of next-generation Android terminals began in Australia early in the year and extended to New Zealand during the pilot phase. These upgrades are designed to leverage Smartpay’s proprietary intellectual property, improve compliance and security, and enable future product innovation.
Management emphasises that these investments, while impacting short-term profitability, are critical to positioning the company for sustainable growth and competitive advantage in the evolving payments landscape.
Outlook and Strategic Focus
Looking ahead to FY2026 and beyond, Smartpay remains focused on executing its strategic goals. The company aims to capitalise on its unique position in the trans-Tasman payment market by delivering a common platform across Australia and New Zealand. This unified approach is expected to create additional value for customers and shareholders alike.
Despite economic headwinds, Smartpay’s measured investment approach, leveraging operating cash flows and debt facilities, signals confidence in its growth trajectory and long-term vision.
Bottom Line?
Smartpay’s FY2025 results underscore a balancing act between growth and investment, setting the stage for a pivotal year ahead in the trans-Tasman payments arena.
Questions in the middle?
- How will the New Zealand acquiring pilot impact revenue and profitability in FY2026?
- What competitive responses might arise from Smartpay’s expanded presence in New Zealand?
- How effectively will the technology upgrades translate into new product offerings and customer retention?
