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- Melbourne based Remitter acquires US-based Mercantile Adjustment Bureau following successful USD 12m cap raise
- Expands headcount to over 180 staff
- Future global acquisitions in the pipeline
MELBOURNE, Australia, Oct. 29, 2021 /PRNewswire/ -- Remitter, a fintech platform that improves bill payment rates by communicating to consumers digitally, has just finalised its acquisition of US-based Mercantile Adjustment Bureau, following a successful pre-IPO USD $12m cap raise led by Canaccord Genuity. The raise was cornerstoned by Allium Capital and Casey Capital.
Remitter is a white-label communications platform, founded in Australia, which uses AI to optimise customer engagement and enhance the recovery of accounts receivables. Currently many organisations face challenges in collecting bill payments on time, with 46% of customers paying late according to Aite Group research.
By analysing behavioural heuristics to automate each customer's experience with branded messaging and payment options, Remitter increases customer recoveries by as much as 280 percent, significantly improving cash flow.
Remitter entered the US market in 2020, following two years of development including compliance across states and territories and collaboration with clients to ensure an optimal feature set.
"Entering the US market involved ensuring the Remitter platform was compliant in all 52 states, each with its own different laws and regulations around payments. To accomplish this in just two years is a huge milestone and achievement," said Simon Scalzo, Executive Director, Remitter.
The acquisition of Mercantile Adjustment Bureau, a leader in receivables management services, increases headcount to over 200 employees. The business has already amassed more than 20 blue chip customers, including a significant take-up in digitally native customers. The US alone represents a USD $4 trillion potential market.
"We created Remitter after identifying a clear gap in the re-payments industry. By making payments frictionless and easy, and engaging with customers in a more targeted way, companies can manage unpaid invoices far more effectively," said Stephen Borg, Chairperson, Remitter Group.
"Our acquisition of Mercantile Adjustment Bureau is an outstanding opportunity to access a significant client base and use our technology to increase end-user satisfaction through flexibility and convenience, while increasing penetration and conversion for our clients."
Mercantile Adjustment Bureau services many of the USA's leading brands and verticals, including Fortune 100 to Fortune 500 banks, financial institutions, retailers, universities, and auto industries.
“In coming together with Remitter, Mercantile’s strong position within the highly competitive ARM industry will be strengthened immensely. They share our philosophy of providing omnichannel options for which the customer may engage, having a positive experience and making the payments process seamless and efficient for all parties, to the highest professional, ethical, and compliance standards," said Bruce Gray, Mercantile CEO.
The acquisition of Mercantile is anticipated to propel the company's revenue to $US18.4 million in 2022, according to company forecasts.
Remitter has aggressive plans for growth in the Americas with continued expansion in the USA, Canada, and South America organically and by acquisition.
The market size, measured by revenue, of the Debt Collection Agencies industry in the US is $18.6bn in 2021, increasing faster than the US economy overalli. It's projected to grow 4.4% driven by low revenue volatility and aggregate household debt. The size of the US ARM (accounts receivable management) market was roughly USD $23.8 billion in 2021, with first- and third-party collection agencies projected to generate USD $16.5 billion in revenue on aggregate, while debt buyers will generate $6.1 billion and repossession services firms will generate $1.2 billion in revenueii.
About Remitter
Remitter is a white-label fintech communications platform which uses artificial intelligence to optimise customer engagement and enhance the recovery of accounts receivables. By analysing behavioural heuristics to automate each customer's experience with branded messaging and payment options, Remitter increases customer recoveries by as much as 280 percent.
About Mercantile
Mercantile Adjustment Bureau, based in Williamsville, US is a leader in receivables management services. It services many of USA's most recognised brands and verticals which include Fortune 100 to Fortune 500 banks, financial institutions, retailers, universities, and healthcare providers..
Media contacts
For more information and/or to speak with Stephen Borg or Simon Scalzo, please contact:
Dee Gligorevic - press@remitter.com
i IbisWorld Debt Collection Agencies in the US - Market Size 2005–2027
ii Kaulkin Ginsberg Accounts Receivable Management: An Industry Poised for Growth
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