Q1 FY27 highlights: AU/NZ GTV passes $1 billion
In its September quarter FY27 investor presentation dated 30 October 2026, Novatti Group outlined Q1 FY27 Payments AU/NZ gross transaction volume (GTV) of $1.20bn. Management described this as up 23% QoQ and 48% YoY, led by account growth in Issuing BIN Sponsorship and Cross Border.
The group snapshot for Q1 FY27 showed:
- Revenue of $6.9m
- Gross margin of 51%
- Cash EBITDA of -$0.1m
- Available cash of $3.3m at the end of the quarter
Volume momentum is building while the group sits near break-even on a Cash EBITDA basis.
| Period | Payments AU/NZ GTV (AUD $bn) |
|---|---|
| FY26 Q2 | **0.78** |
| FY26 Q3 | **0.84** |
| FY26 Q4 | **0.98** |
| FY27 Q1 | **1.20** |
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Financial performance and the pivot to growth
Management framed the quarter as a pivot to growth, with the focus on converting a growing pipeline into recurring revenue and building sales velocity.
Group and segment results
Group margin eased to 51% from 56% in FY26 Q4, while Cash EBITDA was -$0.1m versus $0.3m in Q4. Normalised cash used in operations was shown as -0.2 in Q1 FY27 against 0.3 in Q4, as labelled in the presentation.
Within Payments AU/NZ, revenue was $3.8m (Q4: $4.1m), gross margin was $1.6m and direct EBITDA was $0.5m. Direct EBITDA excludes corporate overheads, and FY27 figures are unaudited. Management cited the paused international BPAY payments and changes in mix between Card Issuing and Acquiring as reasons revenue eased.
| Period | Revenue ($m) | Gross margin ($m) | Direct EBITDA ($m) | Group margin |
|---|---|---|---|---|
| FY26 Q2 | **3.2** | **1.3** | **0.4** | **53%** |
| FY26 Q3 | **3.6** | **1.5** | **0.4** | **54%** |
| FY26 Q4 | **4.1** | **2.1** | **1.0** | **56%** |
| FY27 Q1 | **3.8** | **1.6** | **0.5** | **51%** |
Growth levers
The company highlighted three operational updates for Payments AU/NZ:
- A highly experienced commercial leader was appointed to lead AU/NZ sales.
- International bill payments are targeted to return in early CY2027, including targeted expansion to another Asian country.
- New channels are being initiated that use existing infrastructure and capabilities, including wholesale acceptance distribution.
Why surcharging reform and embedded payments matter
Embedded payments describe businesses getting paid inside the software they already use. The presentation noted that card surcharging ends and interchange caps fall on 1 October 2026, which management said puts commoditised processing under pressure and moves value to software, services and added value.
Data cited in the presentation includes:
- 51% of Australian SMBs on software platforms already take payments through that software’s embedded solution
- 62% adoption in healthcare, the highest of any vertical
- ~40% of in-person card payments made by mobile wallet
- ~50% of Australians used PayID in the past year
Management said inbound enquiries to the commercial team rose following the changes that went live on 1 October 2026.
Novatti positions itself as “a principal card scheme member and acquirer” with a broader acceptance set than local peers. That set spans cards online and in-store, tap on phone, Alipay, WeChat Pay, UnionPay, PayTo, PayID, BPAY and AUDD. Target verticals are Education, Healthcare, Prop Tech, B2B trade, and Travel & tourism.
The Alipay UNSW integration offers a concrete example of the education vertical in action, having processed $33.6 million in GTV since October 2025 with more than 30 further Xetta-connected institutions in the pipeline.
The presentation also covered stablecoins, with the digital finance pillar built on the regulated AUDD stablecoin. It cited Australia’s Digital Assets Framework Act (April 2026) and ~US$390b of real-world stablecoin commerce in 2025, roughly 60% of it business-to-business.
Roadmap: Phase 2 underway
Phase 1 (3 years) is complete, delivering $10m in cost out, the divestment of non-core assets IBoA and Emersion, and 4 quarters of positive FY26 normalised cashflow.
Phase 2 (2 years) is live in FY27, with priorities including:
- Scaling AU/NZ payments with disciplined growth
- Deepening connectivity to emerging digital payment rails
- Incremental progress to the 70% gross margin target
- Potential acquisitions
- Exposure to regulated digital assets through the AUDC shareholding
Phase 3 (FY29+) aims to accelerate the core engine via organic and inorganic growth.
For readers wanting to see how Novatti is funding its growth push, our detailed coverage of Novatti’s partial AUDC stake sale explains the $1.2 million transaction, the retained 18.5 million shares and how proceeds are directed into Payments AU/NZ.
What happens next for Novatti
Two forward items stand out from the presentation:
- Return of international bill payments: targeted for early CY2027, including targeted expansion to another Asian country.
- Phase 3 of the roadmap: FY29+, unlocked on Phase 2 delivery.
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