Up-And-Coming Payments Company Reports Expanding Focus On Underserved Communities With Significant Growth Potential

OLB Group, Inc. OLB is a diversified payments and omnicommerce technology services provider looking to bring its “tried and true” financial offerings to underserved and financially underrepresented communities. OLB is an emerging player in the payments sector, and its business segments include eCommerce merchant services, along with a Bitcoin mining subsidiary which is expected to be spun off to OLB’s shareholders in the near future.

OLB Group is expanding its suite of payments activities to also include the service of the underbanked. As of 2021, 4.5% of all households in America– around 5.9 million households – were still completely unbanked, without any bank account whatsoever. Another approximately 13% of the population is underbanked, having to rely on alternative financial services such as money orders or check cashing services to satisfy their financial needs. Traditionally, marginalized groups are the most likely to be unbanked or underbanked in the U.S., yet this demographic group is huge… and growing.

OLB Group has over 15 years of experience offering its comprehensive portfolio of financial services powered by proprietary technology. It has built out a turnkey suite of financial tools that includes payment facilitation, omnichannel commerce, logistics and customer acquisition, custom apps, crowdfunding, eCommerce software, and more. 

The company deploys this technology platform to over 10,500 merchants across numerous industries. Now it is offering these services in support of traditionally underserved communities. OLB is currently working on a partnership with a distribution channel that serves over 32,000 bodegas, which may be expanded to serve over 40,000 bodegas and convenience stores. This partnership will allow the company to provide a historically underserved market with its services.

The company also plans to offer microloans to bodega owners, as an expansion of its support for the underbanked. Microlending has increased in popularity over the years as an innovative way to promote financial inclusion for more disadvantaged communities, and the global market for microlending is predicted to reach $550 billion by 2030

Analyst Coverage And Strong Revenue Growth

OLB Group has a strong track record in the payments market, and as individuals and companies look for increasing technological integration of their financial services, the rapidly growing sector is itself poised for growth over the next decade. In 2022, the fintech/payments market was worth $160.8 billion, and it is predicted to be worth $1.09 trillion by 2032, growing at a compound annual growth rate (CAGR) of 19.8% during the forecast period. 

In 2022, OLB Group reported over $30 million in revenue, almost doubling its 2021 revenue of $16.7 million. This revenue growth has been driven in part by acquisitions the company made in 2022, including a portfolio of cannabidiol (CBD) and other merchants who utilize the company’s SecurePay payment gateway. The company’s market cap sits at a modest $13 million (a price to Sales Ratio of less than 0.3 in a peer group where 1 to 2 times sales is more common).

This sentiment led market analyst firm Aegis Capital to issue a “Buy” rating on the stock in a recent report on the company. Aegis highlighted OLB Group’s robust revenue growth and its placement within the payments sector, and assigned a 12-month target price of $3 a share, compared with its current share price of $0.78 as of writing.

A little-known shareholder value enhancer is the planned spinoff to shareholders of DMint, the company’s Bitcoin mining enterprise, in the form of a stock dividend. As Bitcoin has rebounded from $16,000 to the current $28,000, the value of all Bitcoin miners has appreciated substantially–which could be reflected when DMint becomes a “pure play” separate from OLB Group.

Other companies offering integrated fintech/payment-like OLB services include the   large-cap names of Shopify SHOP and Big Commerce BIGC.

Learn more about OLB Group by visiting its website

Featured photo by rupixen.com on Unsplash.

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