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.
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.