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The macro-trend of neobanking has so far held up well against the economic headwinds of Covid-19, with challenger bank Tyro Payments (ASX: TYR) continuing to grow its transaction volume over the past three weeks.
The latest numbers from March 1-20 show processed transactions were up 20 per cent year-on-year at $1.19 billion.
This does however represent a slight slowdown on the 29 per cent growth recorded in February, when volumes hit $1.785 billion.
Tyro, which provides payments and banking solutions to more than 32,000 merchants including many SMEs, has emphasised its commitment to supporting merchants in these unprecedented times.
"Whilst we welcome the Federal Government's initiatives announced on 21 March 2020 designed to assist SMEs impacted by COVID-19, we do know many of our merchants are continuing to find the current environment extremely challenging and some, particularly in the hospitality vertical, are severely impacted," the company said in an announcement to the ASX today.
"We have implemented measures to provide such assistance we possibly can to support those of our merchants experiencing hardship.
"We also continue to operate on a business as usual basis providing the level of service, availability and support our merchants have come to expect from our team - with increased customer support teams in place 24 hours a day to assist our merchants."
Due to the current uncertainty around Covid-19, in the interests of transparency Tyro Payments has pledged to provide weekly transaction values updates for the remainder of FY20.
"This is a temporary measure introduced to address the unusual operating environment we face and to provide transparency as to the impact on our operations. Going forward these updates will be provided on the first ASX trading day of each week.
"Tyro remains in a strong financial position, with cash, cash equivalents and financial investments available at the end of February 2020 of $154 million (excluding net banking funds).
"This compares to a balance of $149 million as at 31 December 2019 (excluding net banking funds)."
Led by CEO Robbie Cooke, formerly of Tatts Group and Wotif fame, Tyro Payments listed on the ASX in mid-December backing from the likes of Mike Cannon-Brookes' investment vehicle Grok Ventures and Euclid Capital Partners managing director Danita Lowes.
TYR shares were up 9.81 per cent at $1.175 at 1:10pm AEDT.
Updated at 1:12pm AEDT on 25 March 2020.
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