Payfare Announces Significant Milestone of One Million Active Users
TORONTO, Dec. 7, 2022 /CNW/ - Payfare Inc. ("Payfare" or the "Company") (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for the gig workforce, announced a significant milestone today with the achievement of one million active users1. This represents growth of approximately 79,318 active users (+9%) over September 30, 2022 and 488,228 active users (+95%) over December 31, 2021. Payfare's active user additions in the first 68 days of Q4 2022 have already more than doubled the growth achieved in the entire prior quarter. The Company continues to experience elevated active user growth driven by coordinated marketing programs with its gig platform partners to support their workforces by providing instant or near instant access to earnings, zero-monthly fee neobanking capabilities and robust cash back rewards programs on everyday purchases.
This is a monumental milestone for the Company as building scale with both existing and new partnerships will continue to drive the near-term cash flow generation profile and allow Payfare to develop and deploy new monetization opportunities well beyond its core card and digital banking product.
"We are incredibly proud to announce to the market that we have surpassed the one million active user threshold, an achievement not met by many" said Marco Margiotta, CEO and Founding Partner of Payfare. "With a sizable and growing active user base through existing partnerships that have much further room to grow, top rated service offerings, and a scalable approach to address the entire gig-economy market via the Paid App, we are very well positioned to significantly expand this active user base while generating meaningful cash flows even before any new product initiatives that will benefit from this significant growth."
Payfare is a global financial technology company powering digital banking and instant payment solutions for today's gig workforce. Payfare partners with leading platforms and marketplaces, such as Uber, Lyft and DoorDash, to provide financial health for their workforce.
This press release contains references to "active users" which is not a measure prescribed by International Financial Reporting Standards (IFRS). This supplementary financial measure is provided as additional information to complement IFRS measures by providing a further understanding of our results of operations from management's perspective, to provide investors and security analysts with supplemental measures to evaluate the financial performance of the Company and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets and strategic business plans and to evaluate and price potential acquisitions. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Such measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other corporations. The non-IFRS and supplementary financial measures are not subject to standard industry definition and our definitions and method of calculation may differ from other issuers and therefore may not be comparable to similar measures presented by other issuers.
The Company determines the number of users to its services based on active users. "Active users" represent users who have loaded earnings on their card in the period. Additional information on this measure may be found under the heading "Definitions – IFRS, Additional GAAP and Non-GAAP Measures" in the MD&A for the three months ended September 30, 2022 and 2021 which is available under Payfare's profile on SEDAR at www.sedar.com and is incorporated by reference to this press release.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Payfare's current expectations regarding future events as of the date hereof. Such forward-looking information may include but are not limited to statements regarding continued active user growth driven by coordinated marketing programs, near-term cash flow generation, developing and deploying new monetization opportunities, further growth in active user base, new product initiatives and Paid App by Payfare being a scalable approach to address the entire gig-economy market. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Payfare's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks include the factors discussed under the "Risk Factors" section in Payfare's MD&A for the year ended December 31, 2021. Other factors that could cause actual results or events to differ materially include the inability of Payfare to launch and market its new programs or platforms that are planned in a timely manner, Payfare's inability to manage the increased volume of new cardholder sign-ups, active users or transactions, the impact of inflation and rising costs of goods and services on Payfare's business model, intended monetization opportunities do not materialize as anticipated by management, the imposition of new restrictions related to the COVID-19 pandemic, Payfare's ability to finance and support new programs and platforms, and a general decline in the credit markets or gig economy in North America. Accordingly, readers should not place undue reliance on forward-looking information. Payfare does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Payfare
For further information please visit www.payfare.com or contact: Cihan Tuncay, Head of Investor Relations and Corporate Development, 1 (888) 850-2713, [email protected]
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