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."
About Payfare (TSX:PAY)
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.
1Non-IFRS and
Supplementary Financial Measures
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.
Forward-Looking
Information
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.
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SOURCE Payfare