Flywire, the US-based payments firm that focuses on high-value payments in the healthcare and travel industry, has reported an 85% jump in its payments volume when compared to the previous year as the payments industry continues to throw up strong numbers.
The total payments for the last quarter for the company came in at $1.9 billion for the company which was its first quarter as a public company. Its revenue surged by 56% to $37 million during the second quarter of 2021. Many payments companies have been cropping up of late and many of these have been funded well. It is a space that is growing very quickly but it is also seeing the entry of many startups who are looking to make a difference and capture a part of the market. Flywire seems to have chosen a niche in the healthcare and travel industry.
“We experienced revenue and total payment volume growth across all regions due to COVID-19 pressures easing as well as increased utilization of our solution from existing and new clients,” Flywire Chief Financial Officer Michael Ellis said.
One of the main reasons for the revenue growth is because people are using more and more digital payments even in the healthcare and travel industry as well. The pandemic has led to a big change in the attitude of the users towards digital payments and we are seeing that people are no longer hesitant to try out digital wallets for online and offline payments as well. This has helped the payments industry as a whole.
The company mainly works with healthcare providers and says that it currently works with over 80 healthcare systems and continues to grow in travel and other B2B verticals as well. The company also believes that these industries and their payment systems are ripe for digitization over the next decade or so and hence its focus on this specific niche for now. With increased competition in the payments industry, it may be a good idea for certain companies to focus on a specific niche so that they can avoid direct competition with much larger companies and then engage in a race to the bottom along with them.
The company had gone public only in May and the fact that it has shown some strong growth for the investors in its first quarter after going public should boost the confidence of the company and the investors as well.