Ann: Pushpay 2019 Interim Report, page-24

TH

There is risk of disruption with virtually every business today unless you are a mining Company. I see the PushPay value proposition extending way beyond simply facilitating payments / donations. Yes, that sits at the core but their software creates a very personal interface between the church and it’s congregation. Any future disruptor would need to equalise against this or convince churches to opt out for a payment facilitation only and in so doing, forego the whole networking effect between the church and it’s congregation.

PPH have over the last year shifted their attention to medium and large churches. In the half year results they indicated they had signed the largest Church in the USA, post 30 Sept. The congregation is reported to be 55000 strong. They have also eluded to the fact that on-boarding large churches can take several months, essentially convincing thousands of people to change the process they use to donate. Once complete and benefits abound, where is the motivation to embark on a further change, particularly if it is a payments only benefit. Time will tell how sticky it is, but I applaud PPH for what they have achieved in a relatively short period of time. Study the half year trajectories and extrapolate the trends. Makes for a very compelling investment case IMO.

Rokewa