MYOB picks up Paycorp to expand payments power

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Accounting software provider MYOB is expanding its payments capabilities with the acquisition of Paycorp for A$48m ($36m).

Paycorp currently serves more than 6,500 bank and business clients across Australasia and will be used to beef up MYOB’s existing payments solutions.

The Victoria-based firm says its monthly MYOB PayDirect Mobile transactions grew 64% in 2016.

MYOB currently serves more than 1.2 million SMEs as it seeks to expand its services and develop new sources of revenue.

It claims the addressable market for fees from payments through accounting software platforms exceeds A$700m ($537m) across New Zealand and Australia.

MYOB CEO Tim Reed said: “We are pleased to announce this deal with Paycorp, which brings significant growth opportunity for us in the payment service industry.

“We know from our clients, that cash flow is consistently the number one pain point for small business operators and we are delighted that we can bring together a solution that enables our clients to reduce administration time and costs and improve cash flow through the automation of payment services for their businesses.

“Through this acquisition, we will be the first to market with an integrated payment and accounting solution to our clients, which will create a new revenue stream for MYOB while staying true to our vision of helping businesses succeed.”

The deal will see MYOB acquire 100% of Paycorp and is still subject to satisfying certain condition but is expected to be completed on 1 April 2017.

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