Will QuickFee's share price rise on US popularity?

ASX-listed QuickFee (ASX: QFE) has unveiled ambitions to further expand into the US market, in a move which could ramp up growth and provide a boost to the company's share price.

The move arrives following a successful capital raise by QuickFee to amass funds to drive international growth. Management expects ongoing strong growth to lead to near-term profitability.

QuickFee brings digital payments to professional firms

QuickFee specialises in the provision of digital payments to professional service providers such as accounting and law firms, helping to ensure they receive fees from clients on a timely basis.

The company provides systems for professional firms to automate payments, financing and billing, while also providing them with a range of convenient payment options to facilitate cash flow from clients.

Its QuickFee Pay Now lets the clients of accounting and law firms to make payments for professional services via a range of digital channels, including ACH in the US, EFT in Australia, as well as traditional credit cards.

The platform enables professional firms to directly integrate these options into their existing systems, such as Xero or MYOB.

QuickFee also offers the Pay Over Time service, which essentially provides financing to the clients of professional services firms to make payments of invoices upfront. The company then offers these clients flexible payment plans for periods of up to a year.

Dale Smorgon, QuickFee's non-executive chairman, believes the Pay Over Time product to be the company's leading innovation.

'Essentially, we pay our clients the face value of the invoice for the work that they've undertaken, but allow their clients to pay overtime,' Smorgon said.

The service also works in QuickFee's favour, given professional services firms are responsible for reimbursing the company should their clients fail to make payments.

The Australian professional services sector has taken to the convenience offered by QuickFee's fintech offerings, with around a quarter of the $400 million accounting and legal market making use of its platform.

US market ripe for expansion

Smorgon sees huge potential for its service offerings in the US, given just how many American firms continue to make use of antiquated payment methods.

'The amount of cheques that are still being paid in the US is just phenomenal," Smorgon said to Stockhead.

'So this modernisation and digitisation of payments in the US is something that QuickFee can really take advantage of.'

QuickFee's efforts to expand into the US market have already paid off, with around 760 firms becoming clients.

'We feel that we've got a really strong competitive advantage and we believe we can grow that number,' Smorgon said.

Profitability fast approaches due to US growth

QuickFee's management says the company is fast approaching profitability, with positive earnings now "just around the corner" thanks to the surge in new clients in the North American market along with rising revenues.

According to its latest trading update for Q3 FY24, QuickFee's revenues saw growth of 36% compared to the same period last year.

This included a 50% rise in Australian financing revenue, and a 54% leap in US financing revenue.

In addition to these gains in revenue, QuickFee also saw a 200% rise in new clients in the US for its finance facility.

For this reason, Smorgon believes the company is on the verge of profitability and further growth, following three or four years of actively developing the company and investing in both its team and technological capabilities.

'Currently we're growing at some 30% on an annual basis, so profitability is just around the corner.

'Now with the additional firepower, we don't see any reason why we can't continue to see that grow even more.'