NetCents Technology Inc (CSE:NC) (OTCQB:NTTCF), a cryptocurrency payments technologies company, said Tuesday that it was excited to transition from the “development stage” to "revenue generation” as it filed its condensed interim financial statements for the fiscal first half of 2020.
"I am very excited about this tidal change for our business, we are proving the thesis that cryptocurrencies can be more efficient and cost-effective for all types of transaction, we believe that these customers will be with us permanently, as we have proven superiority when compared to legacy financial services infrastructure," NetCents Technology founder CEO Clayton Moore said in a statement.
For the six months ended April 30, 2020, the Vancouver-based digital payments specialist posted $102,061 in revenue, up 434% compared to $23,503 for the six months ended April 30, 2019.
The company explained that the revenue numbers were “depressed” during the period, as NetCents was running “various promotional campaigns” that incentivized merchants by offering reduced or free processing for a set period to drive increased merchant sign-ups and transactions.
“Once the promotional campaigns expire, the company expects to report higher revenue numbers,” noted the company.
As expected, the group experienced a downturn in the number of retail and eCommerce transactions since the beginning of the coronavirus pandemic. In response, NetCents targeted and is now processing transactions for much larger companies to complete Business-to-Business (B2B) deals.
“These new B2B merchants send invoices that have notional values of up to a million dollars with an average invoice amount of $25,000,” said the company.
This compares favorably to NetCents' historical transaction size of approximately $125 dollars. Furthermore, the company's geographic footprint is expanding - with merchants signing up from South Asia, Europe, and Africa.
“These new clients and transactions will start to impact financials in the coming quarters,” said the company.
NetCents has developed a blockchain platform for merchants and consumers looking for a better way to transact online with cryptocurrency. Its technology allows merchants and firms to accept cryptocurrency payments from customers by providing them with instant settlements.
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