The Novatti Group Ltd (ASX: NOV) share price is shooting for the stars today. At the time of writing, shares in the New Zealand financial software company are trading for 62 cents each – up 26.53%. At one point today, shares reached an all-time high of 69 cents before retreating to their current level.
The massive price movement comes as the company announces a deal with Afterpay Ltd (ASX: APT). The Afterpay share price is 1.78% greater after today's news at $118.49. For contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.34% higher.
Let's take a closer look at today's announcement from the digital banking and payments company.
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Afterpay partnership
The Novatti share price is surging after the company released a statement to the ASX advising it "has been selected by Afterpay" to deliver its digital payment solution in New Zealand. The initial agreement is for three years. Afterpay will pay Novatti for project setup as well as monthly recurring and transaction-based fees.
According to the statement, the deal will enable Novatti to leverage its license with Visa Inc (NYSE: V). Afterpay will issue "Visa card solutions…[including] enabling Afterpay's users to access Afterpay-branded payment cards in their digital wallet for use at participating merchants across New Zealand."
Novatti managing director Peter Cook said the deal with Afterpay shows the potential of the company.
This new partnership with Afterpay again highlights Novatti's digital banking and payments ecosystem in full operation, enabling innovative fintech companies to leverage our assets to bring new products and solutions to market. Working with Afterpay will see Novatti generate further revenue and value from existing assets, highlighting our increasing shift from a development to a monetisation phase.
Afterpay and Novatti share price snapshot
Over the past 12 months, the Novatti share price has increased by more than 220%. Even before today's announcement, the company's value has been increasing on several different announcements, including its partnership with blockchain payment platform Ripple.
The Afterpay share price is around 320% greater than this time last year. It has, however, fallen by around 25% since reaching its all-time high in February this year.
Novatti has a market capitalisation of around $114 million and Afterpay's is $34 billion.
