PaySauce Quarterly Market Update - June 2025

Processing Fees up +17% YoY, as PaySauce gears up
for Australian launch

Lower Hutt, New Zealand - 2 July 2025


Software as a Service Fintech PaySauce (NZX: PYS) reports recurring revenue of
$2.2m up +6% YoY for the June 2025 quarter (1Q26), with processing fees
contributing $1.7m (up +17% YoY) and interest revenue from funds held on behalf
of customers contributing $0.5m, down -21% YoY in line with falling interest rates.
PaySauce also announces that it will recruit its first pilot customers for payroll
services in Australia in the coming months.

KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR 1Q26

● ARR of $8.7m (Up +6% YoY)
● Recurring revenue of $2.2m for the quarter (Up +6% YoY)
● Processing fee revenue of $1.7m for the quarter (Up 17% YoY)
● Customers at end of the quarter: 8,382 (Up 10% YoY)



Metric Jun
2025
1
QoQ
Increase
YoY
Increase
ARR $8.7m +2% +6%
Recurring revenue (for the quarter) $2.2m +3% +6%
Processing fee revenue (for the quarter) $1.7m +6% +17%
Active customers (June 2025) 8,382 +2% +10%



1
All figures are in New Zealand dollars unless specified otherwise. # Active customers are those that have processed
payments in the month

Recurring revenue for 1Q26 is up +6% YoY to $2.2m, with processing fees
contributing $1.7m (up +17% YoY), and interest revenue from funds held on behalf
of customers contributing $0.5m (down -21% YoY).



PaySauce continued with double digit customer growth, up +10% YoY to 8,382, a
key contributor to the +17% YoY increase in processing fee revenue.

Interest earned on the funds held on behalf of customers (the float) declined in
the quarter to June 2025, reflecting the reduction in wholesale interest rates over
the last year. Despite higher float balances, interest income declined -21% against
the same quarter last year, when returns peaked at $0.6m.

CEO Asantha Wijeyeratne said: “We’re pleased to start the financial year strongly in
terms of customer growth and processing fee revenue growth. With New
Zealand’s economic recovery being led from the provinces, the rural sector has
continued to underpin our growth, with increased business confidence following
in the cities. In the short term, interest rates are expected to decline faster than the
float funds will increase. Longer term, cementing processing fee revenue from
overseas markets is the key growth driver and I’m thrilled with the progress made
this quarter on the pilot Australian product.”

Australian payroll launch nearing pilot stage

PaySauce is approaching the release of its payroll solution for the Australian
market and will recruit its first pilot customers in the coming months — a key step
towards proving the growth opportunity across the Tasman. The new Gen 2.0
payroll engine, with its flexible, rules-based architecture, can be easily configured
for new jurisdictions and adapted as employment conditions evolve. We believe
our product is ideally suited to Australia’s unique market dynamics and see strong
potential across the Tasman for expansion given:
● The complexity of the awards system in Australia, with multiple factors
incorporated into the amount an employee gets paid.
● Microbusinesses — the core of PaySauce’s customer base — are
underserved by incumbents who are more focused on larger enterprises
and treat payroll as an add-on rather than providing an accessible
experience for employers with limited payroll expertise.
● Strong demand from sectors like dairy, where we have already proven our
model in New Zealand, as well as adjacent sectors such as construction.

Our focus remains on delivering a reliable, mobile-first payroll experience that
simplifies compliance and enables small employers to manage staff onboarding
and pay efficiently - regardless of geography.

ENDS

ABOUT PAYSAUCE
PaySauce is a SaaS fintech platform delivering digital payroll solutions across 14
jurisdictions in Asia-Pacific. The technology enables small employers to digitally
onboard, pay and manage employees from any device. The platform includes
rosters, mobile timesheets, payroll calculations, banking integration, automated
payments, PAYE filing, labour costing, and automated general ledger entries. The
PayNow feature enables customers’ employees to access the pay they’ve earned
before payday, providing a free alternative to payday lenders. www.paysauce.com

CONTACT

Jaime Monaghan
CFO PaySauce
+64 22 5246366
Please direct any investment queries to investor@paysauce.com