Recommendations » UK

Planet Payment (LON:PPT) report: Strong strategic development

Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Planet Payment has announced that it has received certification from its core existing client, TSYS (TSS.N), the $3bn market cap US-based global electronic payments processor.

- Planet Payment currently provides TSYS with its market-leading Multi- Currency Pricing (MCP) service.

- However, Planet Payment is now fully certified also for its iPay payment gateway to be offered into the TSYS acquirer and ISO customer base that will allow merchants to utilise the Planet Payment iPay payment gateway.

- The iPay Gateway product supports the processing of debit, credit and ACH payments worldwide. In tandem with Planet Payment’s existing MCP service to TSYS’s customers, the combined MCP/iPay product will provide merchants with an-end-to-end, full service and PCI-compliant e-commerce platform, thus enhancing the group’s offer and potential revenue streams.

- This represents a major strategic development for Planet Payment and, while there is no immediate change to our forecasts, it underpins our Bull stance.

- With the shares trading at a 26% discount to our 151p price target, our recommendation on Planet Payment remains Buy.