The IncentiaPay Ltd (ASX: INP) share price closed yesterday's trading session 65% higher after the company announced a new strategic partnership.
IncentiaPay enters a new strategic partnership
IncentiaPay released an announcement to the market yesterday informing shareholders of the company's new strategic partnership with PayWith Worldwide Inc. According to the announcement, the new partnership will see IncentiaPay combine its content and relationships with PayWith's processing engine and platform.
The partnership also includes a multiyear agreement that will allow IncentiaPay to licence PayWith's platforms. The company's management noted that partnering with a company such as PayWith that has a proven track record is a key step in helping IncentiaPay along its transformation strategy
What does IncentiaPay do?
IncentiaPay produces direct-to-member loyalty products for organisations and major brands that offer discounts and other incentives. The company's loyalty programs feature 'always-on' specials across dining, take away and travel with the aim of retaining existing customers, acquiring new customers and reducing churn.
IncentiaPay recently released its activity report for the fourth quarter of FY20 which highlighted $7.78 million in cash receipts and $1.4 million in operating cash surplus. The company noted that the fourth quarter initially saw subdued sales, with April and May recording lower cash receipts due to the COVID-19 pandemic. IncentiaPay cited government-imposed mandates on the closures of pubs, clubs, cafes and restaurants across the country as having a flow-on effect on the company's sales.
In response to the pandemic, IncentiaPay changed its focus from dine-in to takeaway by launching the #EatAloneTogether campaign in order to support customer traffic. The company continues to review the impact of the pandemic and plans to adapt to conditions as they evolve. As a result, IncentiaPay's current focus is on increasing revenue inflows, however the company notes that with border closures in some Australian states, short-term member revenue will be affected.
About the IncentiaPay share price
The IncentiaPay share price closed yesterday's trading session 65% higher at 4.3 cents. This came after the share price hit an intraday high of 5.9 cents, before being sold down. At the time of writing, the IncentiaPay share price has seen further falls today and is currently trading at 3.5 cents.
