A certain digital payment platform made for religious services is currently New Zealand's top stock of the year as it is propelled by U.S. churches that have moved towards online payment during the whole coronavirus. Pushpay Holdings Ltd. has gone all the way up 96% to finally become the very best performer on the known S&P/NZX 50 Gros Index in this year 2020.
The known Auckland-founded company actually facilitates the whole cashless donations and also helps host live-streaming sermons, this is a new draw for churches that are dealing with restrictions on the current in-person gatherings.
The company benefited from COVID-19
The company is actually a beneficiary of COVID-19 with its own platform that enables churches to stream their services more often. This translates to higher engagement with the whole congregation and also an uplift in the donation volumes according to RBC Capital Markets statement back on September 6.
Pushpay currently serves over 10,500 institutions with its main focus on U.S. churches and also raises revenue through the monthly subscription fees as well as per-transaction costs.
The company also says that if it can definitely meet its target of over 50% of churches resulting in at least an average of about 200 weekly attendees, its new annual revenue would then reach over $1 billion in comparison with just about $130 million in the Fiscal Year 2020.
The shift towards digital payments
Certain American individuals, foundations, bequests, and corporations gave a total estimate of about $128.17 billion to the religious institutions last year. This was according to a report that came from the Giving USA Foundation.
The known U.S. faith sector is actually increasing its use of certain digital payment methods as most of the churches still remain shut according to the UBS Group AG's statement in a previous September 7 note.
The trend could reportedly become even more permanent amid the whole ongoing shift away from the use of cash. Although there are certain concerts about the "online church fatigue" according to the broker.
Pushpay's high surge currently highlights just how companies focused on actually delivering services via technology are definitely benefiting as consumers are being restrained by certain government rules as well as social distancing measures that are aimed to curb the whole spread of the coronavirus.
Information technology is currently the top-performing sector recognized by the MSCI World Index for this 2020. The different company insiders have also sold shares amid the whole sure. The Chief Executive Officer of Pushpay, Bruce Gordon, offloaded about 1.4 million in the previous month.
Pushpay's biggest investor, the Hujich family, has recently sold 25% of their stake sometime shortly after the whole stock peaked back in July. Its shares then tumbled down about 8.4% when the whole sale was announced.
This article is owned by Tech Times
Written by Urian Buenconsejo