Here's why the QuickFee (ASX:QFE) share price is zooming 28% higher

The QuickFee Ltd (ASX: QFE) share price has rocketed 28% today following a positive business update. We take a closer look at what was announced.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The QuickFee Ltd (ASX: QFE) share price is by far one of the best performers on the ASX today. This comes after the company provided investors with a market update for its operations in April.

During mid-morning trade, the financial technology company's shares are fetching for 32 cents, up 28%.

A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

QuickFee achieves record growth

Investors are fighting to get a hold of QuickFee shares today following the company's explosive trading update.

According to its release, QuickFee advised that lending activity in Australia is continuing to surge. Both March and April recorded the highest lending months in the FY21 period following the end of the JobKeeper stimulus. In particular, April lending reached $3.5 million, up 30% on the previous highest month in the current financial year. QuickFee stated that it is seeing encouraging signs for a recovery in the local business sector.

In the United States, the company processed US$76.4 million in its US PayNow market for April. This represented an increase of 13% on the previous record month of March 2021. As a result, the total transaction value (TTV) is sitting at an annualised run rate of US$900 million.

QuickFee noted that traditional financing in the United States is relatively in line with the Q2 FY21's run rate. The federal government's stimulus package is continuing to weigh down on the company's lending growth.

Positively, QuickFee Instalments are gaining pick up in the United States, with volumes in April at US$180,000. Again, this reflects a 600% jump on the performance attained in March.

New merchant signups are climbing with the company recording 445 and 191 merchants in the United States and Australia, respectively.

What did the head of QuickFee say?

QuickFee CEO, Bruce Coombes hailed the company's strong progress, saying:

We remain very excited about the growth in our payments platform in the US and the scale that we are building. As we increase our focus on both new merchant sign-ups and existing merchant usage, we expect to see ongoing growth in transaction volumes and further scale benefits.

Also, very pleasing has been the strong pickup in lending in Australia and the early uptake of the QuickFee Instalments product, with April showing very impressive growth in the US.

About the QuickFee share price

Despite today's meteoric gain, the QuickFee share price has tumbled close to 40% year-to-date. In comparison, the All Ordinaries Index (ASX: XAO) has gained around 7%.

Based on today's price, QuickFee commands a market capitalisation of roughly $62 million, with approximately 201.5 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Financial Shares

This ASX payments stock jumped after a key RBA decision

RBA card reforms send Tyro shares 4% higher on Tuesday.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Financial Shares

This beaten-down ASX financial stock could deliver returns of better than 80%

Canaccord Genuity says there's plenty of upside for this stock.

Read more »

two people sitting at a desk look on in dismay as a colleague holds a chart with diminishing green bars topped with a jagged red line representing a stock market crash.
Financial Shares

Down 55%! Can this ASX financial stock stage a major comeback?

Some brokers see upside well above 180%!

Read more »

A young couple sits at their kitchen table looking at documents with a laptop open in front of them.
Financial Shares

AMP jumps on $150 million buyback and CEO handover. Is this beaten-down ASX stock turning a corner?

Investors are cheering AMP’s buyback plan as Blair Vernon officially takes charge.

Read more »

A woman smiles at the outlook she sees through binoculars.
Financial Shares

How much could the Macquarie share price rise in the next year?

This financial giant could deliver big returns.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares charge higher on Monday despite market selloff: What's going on?

What has this financial services company announced? Let's find out.

Read more »

CEO of a company talking.
Financial Shares

Suncorp shares slip as CEO steps aside

Suncorp shares slip after its CEO takes short-term medical leave.

Read more »

A young man working from home sits at his home office desk holding a cup of tea and looking out the window.
Financial Shares

Why is the Magellan share price down 6% today?

The investment manager issued an update regarding the proposed Barrenjoey merger today.

Read more »