Processing Fees up +17% YoY, as PaySauce gears up for Australian launch
Lower Hutt, New Zealand - 2 July 2025
Software as a Service Fintech PaySauce (NZX: PYS) reports recurring revenue of $2.2m up +6% YoY for the June 2025 quarter (1Q26), with processing fees contributing $1.7m (up +17% YoY) and interest revenue from funds held on behalf of customers contributing $0.5m, down -21% YoY in line with falling interest rates. PaySauce also announces that it will recruit its first pilot customers for payroll services in Australia in the coming months.
KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR 1Q26
- ARR of $8.7m (Up +6% YoY)
- Recurring revenue of $2.2m for the quarter (Up +6% YoY)
- Processing fee revenue of $1.7m for the quarter (Up 17% YoY)
- Customers at end of the quarter: 8,382 (Up 10% YoY)
Recurring revenue for 1Q26 is up +6% YoY to $2.2m, with processing fees contributing $1.7m (up +17% YoY), and interest revenue from funds held on behalf of customers contributing $0.5m (down -21% YoY).
PaySauce continued with double digit customer growth, up +10% YoY to 8,382, a key contributor to the +17% YoY increase in processing fee revenue.
Interest earned on the funds held on behalf of customers (the float) declined in the quarter to June 2025, reflecting the reduction in wholesale interest rates over the last year. Despite higher float balances, interest income declined -21% against the same quarter last year, when returns peaked at $0.6m.
CEO Asantha Wijeyeratne said: “We’re pleased to start the financial year strongly in terms of customer growth and processing fee revenue growth. With New Zealand’s economic recovery being led from the provinces, the rural sector has continued to underpin our growth, with increased business confidence following in the cities. In the short term, interest rates are expected to decline faster than the float funds will increase. Longer term, cementing processing fee revenue from overseas markets is the key growth driver and I’m thrilled with the progress made this quarter on the pilot Australian product.”
Australian payroll launch nearing pilot stage
PaySauce is approaching the release of its payroll solution for the Australian market and will recruit its first pilot customers in the coming months — a key step towards proving the growth opportunity across the Tasman. The new Gen 2.0 payroll engine, with its flexible, rules-based architecture, can be easily configured for new jurisdictions and adapted as employment conditions evolve. We believe our product is ideally suited to Australia’s unique market dynamics and see strong potential across the Tasman for expansion given:
The complexity of the awards system in Australia, with multiple factors incorporated into the amount an employee gets paid.
Microbusinesses — the core of PaySauce’s customer base — are underserved by incumbents who are more focused on larger enterprises and treat payroll as an add-on rather than providing an accessible experience for employers with limited payroll expertise.
Strong demand from sectors like dairy, where we have already proven our model in New Zealand, as well as adjacent sectors such as construction.
Our focus remains on delivering a reliable, mobile-first payroll experience that simplifies compliance and enables small employers to manage staff onboarding and pay efficiently - regardless of geography.
ENDS
ABOUT PAYSAUCE
PaySauce is a SaaS fintech platform delivering digital payroll solutions across 14 jurisdictions in Asia-Pacific. The technology enables small employers to digitally onboard, pay and manage employees from any device. The platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE filing, labour costing, and automated general ledger entries. The PayNow feature enables customers’ employees to access the pay they’ve earned before payday, providing a free alternative to payday lenders. www.paysauce.com
CONTACT
Jaime Monaghan
CFO PaySauce
+64 22 5246366
Please direct any investment queries to [email protected]