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- 28 January 2022 17:26
IncentiaPay increases cash receipts by 24% as it prepares for B2B Seamless Rewards launch
While revenues were down 8.9% on the previous corresponding period on an underlying basis (pcp) Incentia Pay (ASX:INP) increased cash receipts 24% to $5.23 million in a market update today.
The company, which provides an offers and rewards marketplace, which connects merchants wanting more business with consumers seeking entertainment, lifestyle and leisure experiences, is counting on a rejuvenation of its platform and a return to profitability through four main digital-led initiatives.
During the quarter, IncentiaPay made solid progress with its proposed B2B Seamless Rewards business, which will be designed to provide tailored, entertainment-based incentives, loyalty and rewards programs to large enterprise customers via a card-linked offer (CLO) or card scheme with an existing loyalty program.
The company secured an agreement with software company The Spineka Group Pty Ltd to develop and maintain the technology for its Seamless Rewards business. Spineka is owned and managed by two former executives of ASX-listed cashback group Cashrewards Ltd (ASX:CRW). The agreement allows IncentiaPay to build its technology on Spineka’s pre-existing intellectual property and provides the option to purchase all underlying IP.
IncentiaPay also executed an agreement with a leading loyalty provider to conduct a CLO program pilot for one of its loyalty programs which is expected to launch in Q3 FY22. The Company is also in discussions with all major CLO providers for leveraging its market leading content services for their programs.
An initiative that seems a good match to the current IncentiaPay database is the impending launch of Entertainment Wine Community direct-to-consumer wine marketplace.
In November, IncentiaPay partnered with wine technology start-up Junovate and Spineka to launch Entertainment Wine Community, a direct-to-consumer (DTC) marketplace that connects customers with Australian wineries and enables them to purchase from multiple cellar doors in one transaction. James Halliday, an icon in the wine industry, is a Director and shareholder of Junovate.
IncentiaPay is also re-platforming its Frequent Values product for its enterprise customers and expects to launch an engagement uplift program to increase engagement over coming months. It started a three-month proof of concept of the 7Rewards application as part of a new partnership with SevenWest Media’s (ASX:SWM) video-on-demand service, 7Plus Pty Ltd using the new IncentiaPay platform.
This first rollout phase with 5,000 7Plus members having access the 7Rewards app, will be followed by a push campaign to 60,000 7Plus customers and further measures to drive engagement. Data obtained will be used to finalise 7Rewards’ approach for future Loyalty program design
Finally, IncentiaPay says it is making progress with returning core B2C business to profitability via the management of renewals and reactivations, improved marketing campaigns and new payment options.
It said the B2C business has shown positive signs through the quarter, despite the emergence of the Omicron COVID-19 variant, which has temporarily impacted revenues in the B2C channel. The Company has nearly 10,000 merchant offers, making IncentiaPay a market leader in the sector.
IncentiaPay Chief Executive Officer Ani Chakraborty said, “We have made significant progress on our growth strategy this quarter, signing our first customer to pilot our Seamless Rewards program and securing a partnership for our first online marketplace offering with Entertainment Wine Community. We also continue to make solid advancements across our core Entertainment and Frequent Values businesses.
“These new and innovative programs are designed to position IncentiaPay as a market leader in the growing loyalty and engagement sector by providing access to our dominant marketplace of over 10,000 offers and experiences across nearly 15,000 locations around Australia.
"We look forward to progressing our Seamless Rewards program in the coming months and launching Entertainment Wine Community in Q4 FY22.”