Tyro Payments Ltd (ASX: TYR) shares are edging higher on Monday after the company announced another solid transaction value update. At the time of writing, the Tyro share price is trading 0.27% higher at $3.69.
Tyro is Australia's fifth largest merchant-acquiring bank by number of terminals in the market, behind the four major banks. Tyro derives a majority of its revenues from payment services via its EFTPOS terminals. The weekly updates provide key insights into how the business is performing.
Image source: Getty Images
Solid transaction values
The Tyro share price is in the green today after the company reported a 96% increase in transaction values between 1 to 14 May, compared to a year ago. This follows a 147% increase in the month of April.
The strong transaction value increases throughout April and May are likely driven by easy comparables against a year ago, at the height of COVID-19 lockdowns. This was during a period when a majority of Tyro's merchant base across hospitality, retail and health sectors were forced to operate at a limited capacity.
However, from a year-to-date perspective, the company's transaction values are up a solid 22% from $17.740 billion to $21.662 billion.
Tyro share price outperforms ASX 200 tech index
The Tyro share price has surprisingly emerged as one of the top-performing tech shares this year.
The S&P/ASX 200 Info Tech Index (ASX: XIJ) has slipped to an 8-month low and is down by 18.5% year to date. This follows significant share price weakness in tech heavyweights including Afterpay Ltd (ASX: APT), WiseTech Global Ltd (ASX: WTC) and Xero Limited (ASX: XRO).
Despite the pressures facing the tech index, the Tyro share price has pushed around 15% higher year to date. Its share price has emerged stronger after its crippling EFTPOS terminal outages and scathing short-seller attack earlier this year.
According to Tyro, it continues to innovate in the payments landscape, with a number of strategic investments announced in its presentation at the Macquarie Australia Conference 2021 and a recent move to acquire Aussie health fintech, Medipass.
