Mogo’s Digital Payments Subsidiary, Carta Worldwide, Reports 36% Increase in Payments Volume in 2023 to $9.9 Billion
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) announces Carta Worldwide's 36% increase in payments volume to $9.9 billion for the 12 months ended December 31, 2023, driven by European expansion and significant investment in the platform.
The reported 36% increase in payments volume for Carta Worldwide signifies a robust growth trajectory, which is particularly noteworthy in the competitive digital payments sector. When a subsidiary of a publicly traded company such as Mogo Inc. demonstrates such a substantial year-over-year increase, it can be indicative of effective strategy implementation and potential market share gains. The growth figure surpasses typical industry averages, which often hover around the mid to high single digits, underscoring the company's outperformance.
Investors may interpret this positive momentum as a bullish sign for Mogo Inc.'s revenue prospects, given that payment volume directly correlates with transaction-based income. Furthermore, the strategic investment in technology infrastructure, such as the migration to Oracle Cloud Infrastructure, suggests a focus on scalability and operational efficiency. This move could potentially lower operational costs and improve margins over time, further benefiting the company's financial health.
However, it's important to consider the capital expenditures associated with such investments and their impact on the company's cash flow. The global payments market, while lucrative, is also subject to rapid technological changes and regulatory shifts, which could affect long-term profitability and competitive positioning.
Carta Worldwide's performance in the European payments market is a reflection of broader trends in digital financial services. The adoption of digital payment solutions is accelerating due to factors such as increased e-commerce activity, the proliferation of smartphones and a shift towards cashless transactions. Carta's ability to capitalize on these trends, as evidenced by its significant growth, suggests that its product offerings are well-aligned with market demand.
The strategic decision to invest in Oracle Cloud Infrastructure could be seen as a move to enhance Carta's technological capabilities, potentially improving service delivery and customer satisfaction. For stakeholders, the alignment with a prominent cloud services provider may also serve as a positive indicator of the company's commitment to maintaining a competitive edge through technological advancement.
While Carta's growth is impressive, it is essential to monitor the competitive landscape, as the payments industry is known for rapid innovation and the entrance of disruptive players. Market dynamics such as consumer preferences, regulatory changes and technological breakthroughs will continue to shape the opportunities and challenges Carta faces moving forward.
The migration to Oracle Cloud Infrastructure represents a strategic move for Carta Worldwide to bolster its digital payments platform. This transition is likely aimed at improving reliability, performance and security, which are critical components in the financial technology space. By leveraging Oracle's cloud solutions, Carta can expect to achieve greater elasticity in handling payment volumes, which is vital for scaling operations in response to market demands.
Investing in cloud infrastructure can also be seen as a commitment to innovation, as it enables the deployment of advanced analytics and artificial intelligence to gain insights and enhance the customer experience. For a digital payments company, such technological advancements can lead to the development of new features and services, potentially opening up additional revenue streams.
However, it is crucial to assess the return on investment for such technological upgrades. The benefits of cloud migration, such as cost savings and improved efficiency, must outweigh the transition costs and any potential disruptions during the migration process. Stakeholders should look for evidence of seamless integration and the realization of projected cost efficiencies in subsequent financial reports.
01/03/2024 - 08:13 AM
TORONTO --(BUSINESS WIRE)--
Carta Worldwide (“Carta”), a global digital payments business owned and operated independently by Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), today announced that its payments volume for the 12 months ended December 31, 2023 reached $9.9 billion 36% increase over the prior year.
“Carta’s growth in 2023 was driven by continued expansion in its core European payments business,” said Greg Feller, President & CFO of Mogo Inc. “We believe the strong momentum in 2023 along with the substantial investment in Carta’s platform during the year, including the previously announced migration to Oracle Cloud Infrastructure, position the business for long-term growth in the $2.2 trillion
About Carta Worldwide
Carta is a digital payments software company which provides technology and services that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual and tokenized cards, as well as payment switching and routing services. Carta was founded in 2008 with a vision to build a modern issuer processing platform that could enable innovators around the globe to deploy a new wave of payment products. The Carta platform provides the infrastructure to help fintech and payments business build and manage their payment systems, and it supports prepaid, debit, and credit card issuer processing. Carta is certified as Visa and MasterCard processor with active card programs in over 35 countries.
About Mogo
With more than 2 million members and $9.9B MogoTrade , offers commission-free stock trading that helps users thoughtfully invest based on a Warren Buffett approach to long-term investing – and make a positive impact with every investment. Moka , Mogo’s wholly-owned subsidiary, offers Canadians a real alternative to mutual funds that overcharge and underperform with a passive investing solution based on a S&P 500 strategy at a fraction of the cost of typical mutual funds. Together, these products offer a holistic solution for best-in-class passive and active investing that is built to optimize the wealth-building of Canadians, not the fees they generate. Through its digital payments subsidiary, Carta Worldwide , Mogo also offers a payments platform that powers the next-generation card programs from innovative fintech companies in Europe and Canada . To learn more, please visit mogo.ca or download the mobile app (iOS or Android ).
Forward-Looking Statements
This news release may contain “forward-looking statements” within the meaning of applicable securities legislation, including statements regarding future growth of Carta Worldwide. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo’s growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, many of which are outside of Mogo’s control. For a description of the risks associated with Mogo’s business please refer to the “Risk Factors” section of Mogo’s current annual information form, which is available at www.sedarplus.com and www.sec.gov. Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240103844498/en/
For further information:
Craig Armitage
investors@mogo.ca
US Investor Relations Contact
New York | Phoenix
shamsian@lythampartners.com
Source: Mogo Inc.
What is the latest announcement from Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) regarding Carta Worldwide's payments volume?
Carta Worldwide reported a 36% increase in payments volume to $9.9 billion for the 12 months ended December 31, 2023.
What drove the growth in Carta's payments volume in 2023?
The growth in 2023 was driven by continued expansion in Carta's core European payments business.
Who commented on Carta's growth in 2023?
Greg Feller, President & CFO of Mogo Inc., commented on Carta's growth in 2023.
What significant investment did Carta make in its platform during the year?
Carta made a substantial investment in its platform, including the migration to Oracle Cloud Infrastructure.
What is the position of the business in the global payments market?
The business is positioned for long-term growth in the $2.2 trillion global payments market.
What is the ticker symbol for Mogo Inc.?
The ticker symbol for Mogo Inc. is (NASDAQ:MOGO) (TSX:MOGO).
