Financial leap at OFX: CEO Skander Malcolm discusses FY 2024 earnings results
OFX Unveils B2B-Led Strategy with Paytron Acquisition
Financial services company OFX has announced its long-term B2B-led strategy, dubbed OFX 2.0, aimed at transforming and expanding its digital marketing, sales, and product capabilities for the B2B segment.
The strategy, outlined by CEO Skander Malcolm during a recent call, focuses on catering to business customers and accounting firms with a global perspective, with the goal of driving growth and enhancing international payment solutions.
A significant contribution to this strategy comes from the acquisition of Paytron, a platform that offers multicurrency, card, and invoice management capabilities. OFX has completed the acquisition and plans to fully integrate and rebrand Paytron as part of its operations.
Paytron's technology will help OFX streamline international payments and automate business payment processes. It will consolidate multiple payments into batches for easy approval, accelerate payment notification workflows, and integrate seamlessly with accounting software like Xero. This will help OFX simplify and accelerate B2B payment operations and reduce manual effort.
The acquisition strengthens OFX’s position as a provider of efficient, automated, and cost-effective global payment solutions for businesses, a core pillar of OFX 2.0’s growth ambitions.
OFX's FY 2024 results, reported recently, showed a solid performance. The company's net operating income (NOI) increased 6.3% year-over-year to A$227.5m, while underlying EBITDA (excluding Paytron) increased 8.2% to A$67.6m. However, the NOI was at the lower end of its guidance, while underlying EBITDA was in the middle of its guidance range.
Despite facing macroeconomic headwinds during FY 2024, OFX focused on "disciplined costs control" and saw synergies in the integration of Firma, a Canadian corporate FX business acquired in 2022.
The pivot to B2B was a strategic move by OFX, as the majority of its business is now B2B-focused. The acquisition of Paytron is part of this longer-term strategy, OFX 2.0.
In summary, OFX 2.0 aims to deliver a modern, streamlined global payment platform that supports the complexities of B2B financial transactions with greater speed and control. The acquisition of Paytron is a crucial step in achieving this goal, offering automation, integration, and cost-effectiveness in international B2B payments.
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[1] OFX Press Release, "OFX 2.0: A New Era of Digital Payments for Businesses", (date), [link] [2] OFX Press Release, "OFX Acquires Paytron to Transform B2B Payments", (date), [link]
OFX's strategic acquisition of Paytron signifies a significant investment in the B2B segment, aiming to improve and extend its business offerings. OFX 2.0, the company's long-term B2B-led strategy, is designed to empower businesses and accounting firms to navigate international payment solutions more efficiently.
