Ovanti’s Shift4 Partnership Poses Challenge to Traditional US BNPL Players

A Strategic Leap into the US BNPL Market

Ovanti Limited (ASX – OVT) has taken a significant step forward in its US expansion strategy by entering into a minimum three-year partnership with Shift4 Payments, a major US payment processor listed on the NYSE. This agreement grants Ovanti access to Shift4’s extensive network of over 100,000 merchants across North America, setting the stage for a rapid rollout of its Buy Now Pay Later (BNPL) services in a market ripe for innovation.

Shift4 processes more than USD 260 billion in transactions annually, making it a formidable partner for Ovanti’s ambitions. The partnership not only provides a broad merchant base but also positions Ovanti as a key player in the US BNPL space, which remains underserved by traditional credit models.

Innovating Beyond Traditional Credit Models

What sets Ovanti apart is its proprietary AI-driven credit assessment engine that evaluates real-time cash flow and income data rather than relying on conventional FICO credit scores. This approach targets the more than 150 million Americans who are often excluded from mainstream financial products due to outdated credit scoring methods. By embracing open banking and real-time data, Ovanti aims to unlock a vast, underserved consumer segment and offer greater financial inclusion.

Peter Maher, Ovanti’s USA BNPL CEO, highlighted the opportunity this partnership presents – "This major partnership allows Ovanti to scale faster in the USA, reach more merchants and consumers, and build a payments ecosystem that delivers affordability and inclusion at scale." The collaboration with Shift4 is a cornerstone of this vision.

Funding Innovation with Stablecoins

Ovanti’s funding model also breaks new ground. Instead of traditional debt facilities, the company uses a merchant settlement facility backed by stablecoins, which are then converted to fiat currency. This mechanism offers faster and lower-cost settlements, providing Ovanti with the flexibility to scale more efficiently than many incumbent BNPL providers. The company has access to debt warehouse facilities of up to USD 100 million, with plans to expand this capacity through engagements with major crypto institutions.

Daler Fayziev, Ovanti’s Executive Director and Chairman, described the partnership as "a transformational moment" and praised the rapid progress under Peter Maher’s leadership. The collaboration with a NYSE-listed company like Shift4 not only validates Ovanti’s technology and business model but also strengthens its financial foundation for aggressive growth in the US market.

Looking Ahead

While the finer details of the partnership are pending further joint announcements and approvals, this deal marks a pivotal milestone for Ovanti. It signals the company’s readiness to challenge established BNPL players by combining innovative technology, a broad merchant network, and novel funding strategies. Investors and market watchers will be keen to see how quickly Ovanti can onboard merchants and consumers, and how its AI-driven credit model performs in practice.