LedgerPay Commercialization Update
Mr. Reinhart added that the loaner hardware will be replaced with the actual hardware as soon as it gets delivered from MasterCard. He confirmed that while the certification process can be completed with the loaner hardware, the company will replace the loaner hardware with the actual hardware prior to initiating the transaction processing.
We also asked Mr. Reinhart about LedgerPay’s certification status with Visa, to which he indicated that Visa would lag MasterCard in the process; but from a commercialization standpoint, the key is to get one of the two certifications completed to initiate the payment processing. He restated that the hardware delays continue to be caused by the global supply chain concerns further exacerbated by the slowdown from the spread of Omicron variant. As previously indicated, we continue to maintain end of Q1/early Q2 as the LedgerPay commercialization timeline and have made no changes to our estimates at this time.
Business Update
Mr. Reinhart indicated that the BankCard business line did see some softness during the holiday season, primarily due to the weakness across e-commerce esp. past mid-December, but the BankCard team continues to onboard new customers.
On the Global Cloud Solutions front, the company continues to benefit from some of the recent acquisitions like Mazik Global and Catapult, whereby these businesses are creating new recurring revenue streams through their unique SAAS based solutions like MazikCare and Spyglass, respectively. Management continues to leverage these new solution offerings alongside organic growth of the company’s core business model.
Appointment of Jana Schmidt as President of Global Payments Solutions
As the President of Global Payments Solutions, Mr. Schmidt will be responsible for aligning Quisitive’s strategic initiatives of full commercialization of its cloud-based payments processing and Payments Intelligence platform, LedgerPay, along with the ongoing management of BankCard USA, and the build out of the growing merchant services group.
Jana specializes in go-to-market initiatives and execution of growth strategies. Jana has only been in the role for ~15 days, but based on our discussion, she seemed to be well-versed with the LedgerPay and BankCard businesses and already has a clearly defined execution strategy for LedgerPay commercialization and growth of the BankCard business. We believe she will be a valuable addition to the LedgerPay and Quisitive team and can help deepen and broaden Quisitive/LedgerPay’s existing go-to-market strategies thus expediting LedgerPay’s commercialization process, once initiated.
As per the company’s strategy, post certification, the initiation of commercialization process will include rolling out the LedgerPay platform across ‘Customer One’ followed by ‘Wave One’ which will include rolling the platform out to BankCard incumbent customer base, followed by ISOs like Paytron, and then start onboarding net new customers.
Overall, we continue to maintain an optimistic outlook on Quisitive and esp. the LedgerPay platform. We do believe the LP platform, once commercialized, has the ability to disrupt the payment processing ecosystem through its Cloud-based Payment Processing solution alongside its Payment Intelligence offering.