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Here are 1-3 brief analogies for Paymentus:

• A Bill.com for large enterprise bill collection. (Similar to how Bill.com automates accounts payable and receivable for SMBs, Paymentus provides a comprehensive platform for large organizations like utilities and government agencies to manage their customer billing and payments.)
• The Shopify for recurring bill payments. (Just as Shopify provides a platform for businesses to manage their e-commerce sales, Paymentus offers a platform for large billers to present and collect recurring payments from their customers.)
• The Stripe for utility and government bill payments. (Like Stripe facilitates online payments for various businesses, Paymentus provides a specialized, integrated platform for processing high-volume, recurring payments for industries such as utilities, insurance, and government agencies.)

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• Electronic Bill Presentment and Payment (EBPP) Platform: A comprehensive cloud-based platform enabling businesses to deliver digital bills and accept payments across various channels, including online, mobile, IVR, and voice assistants.
• Customer Engagement Solutions: Tools and features designed to enhance communication and interaction between billers and their customers regarding billing and payment processes.
• Payment Processing and Routing: Securely handles the processing, routing, and reconciliation of digital payments from customers to their respective billers.
• Data & Analytics: Provides reporting and analytical tools to offer insights into payment trends, customer behavior, and operational efficiency for billers.

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Paymentus (PAY) Major Customers

Paymentus Holdings, Inc. (PAY) primarily sells its cloud-based bill payment technology and solutions to other companies (B2B), which are billers and financial institutions that then serve their own end-customers. According to Paymentus' SEC filings, no single customer accounts for more than 10% of its revenue in any period. Therefore, specific individual "major customers" by name are not publicly disclosed due to lack of revenue concentration. Instead, Paymentus serves a diverse base of organizations across several key industries.

The major categories of customer companies that Paymentus serves include:

• Utilities: This is a significant segment for Paymentus, encompassing electric, natural gas, water, and municipal utility providers. Paymentus enables these utility companies to offer modern and convenient bill payment options to their consumers and businesses.
• Financial Institutions: Banks and credit unions are key customers. Paymentus provides its robust platform to these financial institutions, allowing them to offer comprehensive bill pay services directly to their account holders, enhancing their digital banking offerings.
• Government Agencies: Various state and local government entities utilize Paymentus' solutions for processing payments related to taxes, fees, fines, licenses, and other government services.
• Telecommunication Providers: Companies that offer internet, cable television, and phone services are also customers, leveraging Paymentus' platform to manage and process customer payments efficiently.

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• Amazon.com, Inc. (AMZN)
• Mastercard Inc. (MA)

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The key risks to Paymentus (PAY) business include:

1. Margin Pressure from Customer Mix and Volume Discounts: Paymentus faces a core challenge in balancing rapid enterprise client growth with margin protection. The company experiences margin pressure due to large enterprise volume discounts and a shift in its customer mix towards high-volume enterprise billers, which typically have lower margins. While driving revenue, this shift has led to a decrease in gross profit margins.
2. Regulatory and Cybersecurity Risks: As a provider of cloud-based bill payment technology, Paymentus operates in a highly regulated environment. It is subject to various laws and regulations related to payments, privacy, and data protection. Non-compliance with these complex and costly regulations could lead to fines, litigation, and reputational damage. Additionally, the company faces significant cybersecurity risks, including fraud, data breaches, and evolving attack techniques, which could result in financial losses and liability.
3. Intensifying Competition and Industry Consolidation: The markets in which Paymentus operates are highly competitive and are subject to ongoing industry consolidation. The company must effectively compete against existing and emerging players in the electronic bill presentment and payment services market, and any failure to do so could negatively impact its business, operating results, and financial condition.

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The emergence of consolidated bill payment and management platforms, driven by open banking initiatives, major financial institutions, or large technology companies, poses a clear emerging threat. These platforms could disintermediate Paymentus by offering a single point of access for consumers to manage and pay all their bills directly within their primary banking app, a popular personal finance management app, or a digital wallet from a tech giant. This shift could reduce the reliance of billers on dedicated electronic bill presentment and payment (EBPP) solutions for their customer-facing interface, as the interaction moves to a third-party aggregator that leverages direct bank integrations or established consumer relationships.

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Paymentus (NYSE: PAY) primarily offers cloud-based billing, payment, and customer engagement solutions, specializing in electronic bill presentment and payment (EBPP) and recurring payment services. These services are utilized by over 2,500 clients across North America, including utilities, financial services, healthcare providers, insurers, and government entities.

Addressable Market Sizes:

Electronic Bill Presentment and Payment (EBPP)

• United States:
  • The market size was valued at approximately USD 49.8 billion in 2024 and is projected to reach USD 116.9 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 8.9% from 2025 to 2033.
  • Another estimate indicates the market was valued at USD 25.86 billion in 2024 and is expected to reach USD 47.58 billion by 2030, with a CAGR of 10.53%.
  • In 2023, the market was valued at USD 25.3 billion, with projections to grow to USD 27.91 billion in 2024 and USD 61.14 billion by 2032, at a CAGR of 10.3%.
• Global:
  • The global EBPP market size was valued at approximately US$ 19.24 billion in 2024 and is projected to grow at a CAGR of 7.5% from 2025-2031.
  • The global market size was valued at USD 25.3 billion in 2023 and is poised to grow from USD 27.91 billion in 2024 to USD 61.14 billion by 2032, at a CAGR of 10.3%.

Recurring Payments

• United States:
  • The market reached USD 51.5 billion in 2024, with an 8.3% CAGR.
  • It is expected to grow to US$ 74.8 billion by 2033.
• Global:
  • The market was valued at USD 154.7 billion in 2024 and is predicted to grow to approximately USD 394.0 billion by 2034, recording a CAGR of 5.94%.
  • The recurring payments market size was $166.69 billion in 2024, projected to grow to $182.06 billion in 2025 at a CAGR of 9.2%, and to $261.36 billion in 2029 at a CAGR of 9.5%.
  • Another estimate for the global market size is US$ 160.3 billion in 2024, forecast to expand to US$ 247.5 billion by the end of 2031, at a CAGR of 6.4%.

Overall Bill Pay Market

• United States:
  • The total U.S. bill pay remaining addressable market, representing bills paid annually through non-Paymentus channels and billers, accounted for 16.2 billion bills in 2024.
  • Consumers in the U.S. spent $5.6 trillion on monthly bills in 2023.

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Paymentus (PAY) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion of Customer Base and Enterprise Client Onboarding: A primary driver of revenue growth for Paymentus is the successful onboarding of new billers, particularly large enterprise and mid-market clients. This strategy directly increases transaction volumes and overall transaction values processed through its platform. The company has highlighted a strong customer pipeline and significant onboarding activities, underpinning confidence in sustained growth.

2. Expansion into New Industry Verticals: Paymentus is actively expanding its platform into new market verticals, successfully onboarding clients in diverse industries, including a large B2B client in a new vertical. This adaptability of its platform allows Paymentus to expand its total addressable market (TAM) and attract new types of clients, thereby fueling revenue growth.

3. Growth in Transaction Activity from Existing Customers: Increased engagement and higher transaction volumes from existing billers, often referred to as "same-store sales," are a significant contributor to revenue growth. This indicates the sticky nature of their platform and the potential for organic growth within their current client base.

4. Platform Innovation and Enhanced Offerings: Continuous technological advancements and innovation within its cloud-based bill payment platform are crucial for future growth. This includes the expansion and increased activity on its Instant Payment Network (IPN) and strategic investments in areas like "agentic AI." These enhancements attract more business, provide greater value to clients, and can lead to an increased average price per transaction due to the robust capabilities of the platform.

5. Monetization of Interchange Expenses: Looking ahead, Paymentus has identified future opportunities in transforming interchange expenses, which are currently a cost center, into a revenue-generating aspect of the business. This strategic shift could significantly enhance profitability and contribute to overall revenue expansion.

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Share Repurchases

• Paymentus has not made any share repurchases over the last 3-5 years.

Share Issuance

• Paymentus completed its Initial Public Offering (IPO) in May 2021, pricing 10,000,000 shares of Class A common stock at $21.00 per share.
• The IPO, including the full exercise of the over-allotment option, resulted in the issuance of 11,500,000 shares and raised $242 million.
• The number of shares outstanding increased from approximately 0.11 billion at the end of 2020 to 0.129 billion as of June 2025.

Inbound Investments

• Accel-KKR, a financial investment firm, made a significant investment in Paymentus in 2011, which fueled the company's emergence as a market leader, and owned 70% prior to the IPO.

Outbound Investments

• Paymentus acquired Payveris, LLC in September 2021 for approximately $152.2 million, paid with a mix of cash and Class A common stock, to expand its Instant Payment Network to financial institutions.
• Paymentus also acquired Finovera for $12.9 million in August 2021.
• Proceeds from the 2021 IPO were intended to fund company acquisitions in foreign markets and expand the product line.

Capital Expenditures

• Funds raised from the IPO were planned for adding and expanding features on the Paymentus platform.
• The company intended to invest heavily in the U.S. market for growth, platform development, and expanding its product offerings.
• Capital allocation also focuses on acquiring companies that add capabilities and expand the platform to new regions like Europe, Asia-Pacific, and Latin America.