Pay.com.au chief insists the $850m ASX IPO aspirant won’t be hurt by RBA reforms
The company expected to conduct the next big IPO on the ASX says it can survive no matter what the RBA decides on payments next week, as scepticism swirls over its mooted valuation.
The chief executive of ASX hopeful Pay.com.au has expressed confidence in his company’s business model ahead of an anticipated IPO next month, as the Reserve Bank prepares to finalise long awaited payment reforms that could upend corporate loyalty programs.
Next Tuesday (31 March), the RBA will release decisions on its proposed ban on surcharging, caps on interchange fees charged by banks and other measures to increase payment fee transparency.
While those original proposals are subject to consultation, the thrust of them is widely recognised as a threat to Ioyalty programs including Qantas’ Frequent Flyer scheme, removing the interchange fees that ultimately fund them.
But Pay.com.au chief executive Ed Alder hit back at speculation his business — allowing customers to earn points on business expenses — would be put under pressure, telling Capital Brief it may instead be in a position to capitalise on the changes if they “lead to a lower points earn rate” on credit cards.
