FTAC Olympus Acquisition Corp (NASDAQ: FTOC) is a blank check company, focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in Philadelphia, Pennsylvania.
FTAC Olympus Acquisition will combine with Payoneer in 2021. The global payments market has decades of growth ahead as more companies move to digital payments and the existing companies grow. Payoneer provides a payments platform for more than 5 million marketplaces, enterprise and SMBs in over 190 countries. The company reported 2020 payments volume of $44.4 billion for reported volume growth of 53% and adjusted volume growth of 67%.
The company provides a full suite of payment options for marketplace ecosystems allowing for money to be deposited into a Payoneer account, mobile wallet, and even physical and virtual cards or sent via bank wires and paper checks. The full suite of payment options makes the payments platform attractive to marketplace participants.
Payoneer, the digital payments platform, reaffirmed strong 2021 financial guidance as follows:
- Payment volume of $64 billion.
- Revenue of $432 million.
- Transaction profit of $311 million.
The company is targeting payments volumes to surge nearly 50% for the year with revenues growing nearly 25%. The long-term model has revenues and adjusted EBITDA growing at a 20% annual clip similar to how other payments volumes provide consistent growth.
The company has the same growth rates of PayPal (PYPL), but trades much more like Fiserv (FISV). Payoneer is a cheap stock. The digital payments company has a strong future and payment stocks tend to start off slow before the market becomes familiar with the consistent growth trajectory offered by the platform. Investors should use the current weakness to load up on FTOC before merger with Payoneer.