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Pushpay adds US church-app to portfolio

NZ Newswire logoNZ Newswire 23/11/2016 Jonathan Underhill

Pushpay Holdings, the mobile payments app developer, says it will acquire a church app business from Bluebridge Digital for $US3.1 million ($NZ4.4m), continuing an expansion that saw revenue soar 308 per cent in the first half while its net loss widened.

Bluebridge is one of the leading providers of church apps in the world and provides churches with "high-quality mobile apps, a scalable platform, intuitive content management system and mobile expertise".

Pushpay will pay cash for the business after raising $A40m ($NZ42m) in a private placement last month, ahead of its secondary listing on the ASX.

It cited Giving USA figures showing US$119.3 billion ($NZ168.9b) was given to religious organisations in 2015, which it said amounted to a US$2.2b ($NZ3.1b) revenue opportunity that's expected to rise to US$3.1b ($NZ4.4b) in 2020.

Pushpay's operating revenue rose to $US12m ($NZ17 m) in the six months ended Sept. 30, from $US2.9m ($NZ4.1 m) a year earlier, the Auckland-domiciled, Redmond, United States-headquartered company said in a statement. Its net loss widened to $US11.3m ($NZ16.0 m) from $US2.9m ($NZ4.1 m).

Annualised committed monthly revenue rose to US$33.9m ($NZ47.9 m) from US$8.9m ($NZ12.6 m), while total merchants rose to 5,286 from 2,102, it said.

Puspay is targeting US churches with technology that makes it easy for congregations to make donations using their mobile phones and is also expanding its mobile payment app beyond the faith sector to helping people pay their utility bills such as water and insurance.

Pushpay shares dropped 2.7 per cent to $1.80 and have gained 5.7 per cent this year.

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