“At Nium, our focus has always been on use-case and product diversification. The recent pandemic has only reiterated this need,”says Prajit Nanu, co-founder and CEO of Nium. Here, he shares how Nium has used the pandemic as an opportunity to improve its unit economics, leading to a reduced revenue cost and improved monetization.
The following is an excerpt from What Did You Change?, contributed by Prajit Nanu, co-founder and CEO of Nium.
The COVID-19 pandemic has resulted in significant thematic bearishness overall, and the macroeconomic impact has been felt across sectors. With payments being inextricably linked to the health of our economy, it comes as no surprise that FinTech as an industry has been affected as well.
At Nium, our focus has always been on use-case and product diversification. The recent pandemic has only reiterated this need.
Even though we saw some impact on certain lines of business — such as card issuance, which has a high sensitivity to travel and spending — a majority of our business demonstrated resilience due to the versatility of our platform.
For instance, our Banking-as- a-Service (BaaS) infrastructure allows us to offer cross-border payments, issuance and collection as modularly consumable services. This means customers can pick and choose solutions that make sense for them, or bundle/stack them when needed. As the solutions are API-based, this makes it easier for them to integrate once and upgrade in real time.
Nium’s platform also brings together our extensive portfolio of licenses in over 40 different markets. This combination of regulatory and tech assets is unique to Nium, and is at the core of our unique value proposition.
Though the pandemic has proven to be a business challenge for many, Nium took this as an opportunity to significantly improve our unit economics, reducing our cost of revenue and improving monetization. We have been actively stepping back on a couple of “blue sky” initiatives, and have been focusing our resources and energy on strengthening our core business lines, as well as selectively diversifying our use cases. We are also using this relative stability to build a war chest for tuck-in acquisitions that compresses time to market.
Today, businesses and economies are slowly recovering — and at Nium, we see this reflected in our business metrics. Though we have witnessed some of our strongest lifetime months recently, the team is continuously pursuing inorganic growth and looking for the next milestone.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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