Why is the Tyro Payments (ASX:TYR) share price dropping today?

The Tyro Payments Ltd (ASX: TYR) share price is falling today on the back of some business updates. Here are the details on what's new at Tyro

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published May 6, 2021 12:49 pm AEST

The Tyro Payments Ltd (ASX: TYR) share price is not having a great time of it today.

At the time of writing, Tyro shares have fallen 2% to $3.43 a share. That's meaningfully underperforming the broader S&P/ASX 200 Index (ASX: XJO), which is down 0.4% today.

It's been a topsy-turvy year for Tyro, whose shares are, on current pricing, up 2.3% year to date.

The payments company endured a short seller attack early in the year, which resulted in some share price turmoil at the time. Saying that, Tyro shares are also up 48.9% since 15 January, so any investor who took advantage of this turmoil could have done well for themselves.

So, what could be behind today's share price fall?

Well, it's likely to be a business update Tyro released to the markets this morning. Just before market open, Tyro released a copy of its presentation at the Macquarie Australia Conference.

This presentation contained some significant business updates for the company. Let's go through them.

ASX mining shares iron ore price share price falling represented by cartoon of little business men falling off broken graph arrow — Image source: Getty Images

Latest update

So Tyro gave investors some monthly transaction data for the past 6 months. Its payment volumes for April came in at $2.246 billion, which was a 147% increase on the same month last year, and a 53% increase on April 2019's numbers.

Merchant churn for April was 10.8%, down from the 12% average for the first half of FY2020, but up from the 10.2% average for the first half of FY2021. Tyro has 943 new merchant applications for April 2021, down from the 1,072 we saw in the previous month of March.

Finally, Tyro also reported that its weekly loan originations continue to grow rapidly. Loan originations stood at $379,705 as of 7 March. But since then, they have grown almost every week, reaching a sum of $1,565,638 by the week ending 2 May.

About the Tyro Payments share price

Tyro is a disruptive company in the payments space. It offers payment facilities such as card terminals, in-app digital payment infrastructure, and the facilitation of recurring payments for businesses. It has the largest number of payment terminals in Australia behind the four big banks.

On the current share price, Tyro Payments has a market capitalisation of $1.74 billion. It is up just 1.48% since its December 2019 ASX IPO.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.