AppTech Payments Corp. (NASDAQ: APCX) stock may be consolidating, but the Q4 rally from a technical basis remains intact. On Monday, APCX shares touched $1.10, a 61% increase from its initial standing in Q4 and an impressive 81% over the start of Q2. While shares may have pulled back yesterday, volume remains higher than average and interest at the bid into the close on Wednesday shows APCX could be setting up for its next move, which, if volume tends to precedes price, is indicating higher. Interestingly, volume to start the month exceeded one million shares exchanging hands, a more than 10x increase over the past three months. To those looking for reasons why: APCX has provided plenty.
Foremost is that AppTech has established the necessary foundation to stake its claim as one of the most innovative publicly traded fintech companies, with its platform providing seamless, omni-channel commerce between businesses and consumers. Its contributions are timely, noting that the global fintech market offers a more than $131.14 billion revenue-generating opportunity to the companies providing best-in-class services. While an impressive target market today, the more excellent news is that it's expected to surge higher in the coming years, with estimates pegging the market size to reach a more than $385 billion opportunity by 2027.
Best of all, APCX is proving it doesn't take a large-cap name to meet the demand. In fact, as evidenced by rising revenues and its new Commerse™ platform capable of meeting diversified client needs, APCX is already proving that when it comes to earning business, company size isn't the determining factor in securing a sizable share of a booming market. Rather, a more effective way of earning market attention is by providing superior technology and service. Through its Commerse™ platform, APCX meets those measures. Furthermore, by leveraging its inherent abilities, it could keep the path of least resistance for shares to the appreciable upside.
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Facilitating Seamless Cloud-Based Commerce
There are more reasons to be bullish. As a cloud-based Commerce Experiences-as-a-Service ("CXS") platform supported by AppTech's mobile commerce patents, core partner technology, and other related internal intellectual property, Commerse™ is showing it can do things competing apps and platforms can't. Foremost is its CXS solutions incorporating PaaS, BaaS, Data, AI/ML, and MarTech, distinctions that help generate flexible, company-specific, personalized payment and banking experiences for its client users. That comprehensive nature could extend APCX's competitive advantages in a sector that is no longer an "if" proposition; it's already penetrating global financial markets. In fact, more than "could," it's likely.
That assumption makes sense on a comparative basis, best reflected by AppTech's description of the platform as "One Platform. All Commerce." Surprisingly, despite what developers know about the sector, not all platforms are built in a similarly comprehensive fashion. That leads to competing platforms being unable to seamlessly deliver company and client-specific digital banking services or manage digital and virtual payment processes. Worse, they can't offer alternative payment processing services like text-to-pay or provide cross-border payment capabilities. APCX's Commerse™ platform can, however - and not piecemeal, but through a suite of services facilitated by a single trusted ecosystem.
That single ecosystem approach matters. It's a differentiator that can do more than attract multi-sector client interest; it can fuel AppTech's mission to deliver a better way for businesses to provide their customers with customizable commerce experiences. And with that mission fueled, increasing shareholder value should follow. Remember, the attraction to the Commerse™ platform comes from facilitating an "entire approach" to management. That's a valuable distinction compared to competing products that need to integrate different parts of different platforms, only to find out they aren't compatible. An assimilated platform is crucial for fintech, especially when a single hiccup in a process can cost billions of dollars. Commerse™, with its all-in-one makeup, can eliminate cross-technology mishaps. It is an intentional design created by a management and development team that understands the sector and how to get products to market. Part of the spike may be attributed to investor confidence from a series of new C-level hires.
Those include Deborah Hinderstein as Vice President of Payment Operations and Alexander Amaeze as Technical Product Manager, two additions to the APCX team that immediately add substantial experience and expertise in the fintech industry. Just as importantly, these new team members can efficiently accelerate product and project development to meet surging sector demand for the types of innovative services that APCX can offer.
Fintech Is A Resilient Sector
Demand for such services isn't slowing. Despite headlines of consumer spending, inflation, and rising interest rates, e-commerce sector companies appear to be doing quite well. Block, Inc. (NYSE: SQ) reported that Black Friday and Cyber Monday weekend saw over 61 million transactions on Square and Afterpay apps, showing that demand to purchase is still significant. The better news for those in the space, including AppTech, is that December spending reports indicate that buyers are still pulling out their wallets despite presumed headwinds, with surveys suggesting that about 80% of consumers intend to spend the same, if not more, compared to 2021. Block isn't the only e-commerce player doing well.
Payoneer Global Inc. (NASDAQ: PAYO), a commerce technology company powering payments and growth for the new global economy, reported 30% revenue growth year-over-year in its Q3 filing as global breadth and diversity continue to be strong revenue drivers. The better news is that PAYO’s commentary supports the broader premise that customer acquisition and adoption of High-Value Services, including B2B AP/AR and commercial credit services, is still accelerating. Bullish perspectives on the fintech industry strengthen the APCX value proposition, and analysts aren’t only excited about where the sector is now, but also for where it's headed. According to PayPal Holdings, Inc. (NASDAQ: PYPL), there's still much in play.
In fact, like emerging brands and companies, PYPL is looking to develop better ways to serve its 430 million active accounts. In Q4, they launched PayPal Rewards, its unified rewards program giving customers an easy way to shop, earn, track, save, and redeem rewards, managed through its PayPal app. That focus proves that being comprehensive by design is a meaningful inclusion. And while these varying companies have different priorities than APCX, they all serve up data supporting a shared conclusion: fintech innovation is critical in creating a digital path to facilitate global commerce. Companies not embracing the change probably won't survive in the long term. On the other hand, APCX not only embraces the revolution; they are helping to usher it in.
Capitalized To Accelerate Growth In Q4 And 2023
That focus and ability could accelerate APCX’s mission to grow appreciably larger faster than many expect. Indeed, investors have already been bidding shares higher based on revenue growth and the introduction of its Commerse™ platform, but there's still more to inspire additional interest. For instance, APCX held $5.9 million in cash at the end of Q3, an ample amount to expedite the marketing of its new products in Q4 and throughout all of 2023. Also, keep in mind that APCX isn't a one-product company. There's more asset firepower contributing to the revenue-generating mission.
A significant revenue driver could come through its partnership with Chip Financial supporting its growing fintech, digital banking, and payments ecosystem. The partnership enhances the AppTech platform value proposition by leveraging Chip Financial's suite of solutions focused on a tailored customer approach to provide capabilities in Payments-as-a-Service (PaaS) and Banking-as-a-Service (BaaS). There's more to like.
AppTech also announced reaching Canadian market opportunities through a partnership enabling cross-border transactions in retail outlets throughout Canada, including in-person retail, e-commerce, transportation, lodging, hospitality, automotive, and restaurants. That's still not all. AppTech announced signing a Definitive Agreement to acquire Hothand Inc. This patent-holding company owns the intellectual property rights to a wide array of mobile credit/debit transactions and mobile search, location, offer, and payment fields. In addition to all the above being accretive to value appreciation, the better news is that because each is seamlessly implemented into existing technology, the rewards from those initiatives can be accrued almost instantaneously.
In fact, a new office in Austin, Texas, could help make that happen by serving as a licensing headquarters and primary site for new product development within digital banking and mobile payment technologies. That includes monetizing potential from newly developed system functions, including CI/CD pipelines, go-forward scalable and secure AWS infrastructure, POC for Text2Pay Invoice Systems, and the same for Crypto Payments Invoice Systems. In short, APCX has revenue drivers in place designed and intended to increase shareholder value in the new year. More simply put: these deals support higher share prices.
Smallcap Worthy Of large-Cap Consideration
All told, while APCX shares trade at small-cap levels, the sum of its parts helps make the case that the company's share price is disconnected from a more appropriate representation of its intrinsic value. And despite shares moving sharply higher over the past weeks, a fairer appraisal of what's currently in play and what's in store for 2023 can justify considerably more upside. Noting that APCX is positioned better today than when it traded at its 52-week high of $3.15, that level may very well be breached in the coming weeks, especially if the launch update for Commerse™ and the revenue guidance from that stays on track.
Also, it's noteworthy that APCX management is undoubtedly bullish about 2023. Luke D'Angelo, CEO of AppTech, noted that while business is good now, expect it to get better, saying, "We have accelerated our progression to help meet the planned launch of our Commerse™ platform in the coming weeks. Our team is hyper-focused on bringing this all-new Fintech product to market as it will create truly seamless omni-channel, immersive experiences for our clients and their customers."
He has reasons to be optimistic. Commerse™ is, after all, one of the most innovative, cloud-based Commerce Experiences-as-a-Service platforms available. Moreover, it's backed and protected by robust mobile commerce patents, core partner technology, and substantive internal intellectual property, making it one of few that can seamlessly deliver digital banking, text-to-pay, crypto payments, and merchant services from a single, unified platform. And remember, from an investor's perspective, clients aren't the only near-term winners: AppTech is, too, and by extension, so are its shareholders.
That results from AppTech, after the Commerse™ launch, being transformed from its traditional payment processor role into a fully featured Software-as-a-Service (SaaS) company with end-to-end digital commerce service offerings. That transformation will bring substantial new revenue streams with it, which are the lifeblood of appreciating share prices. And in the massive Fintech-as-a-Service (FaaS) market space, those expected revenues can add exponentially to those accrued today. If that's the near-term case, the intra-month 61% Q4 gain may be a launchpad, not a stopping point.
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