Payment industry: how HPS wants to strengthen its positions

AZIZ HORANI
DEPUTY CEO HPS

After a solid 2021 fiscal year, HPS is specifically betting on Version 4 of its PowerCARD solution to accelerate its organic growth over the next few years. The group also remains on the lookout for external growth opportunities. The regions of Europe, Asia Pacific and South Africa are forming preferred markets in the short term with significant opportunities being discussed. The group is also in advanced talks with a global partner to prepare an offer tailored to the American market.

How do you evaluate your results in 2021?
The results for 2021 are quite satisfactory given the context in which they were achieved. The group has succeeded in returning to strong revenue growth of +14.4% thanks to the organic growth of its activities and the aggregation of acquisitions made in 2021, ICPS and IPRC.

What are the driving forces?
This growth has been made possible thanks to the excellent performance of the Processing activity, which consists of offering our PowerCARD solutions in SaaS (Software as a Service) mode. This activity continued to achieve a very high growth rate (increased by 111.6%, thanks to strong organic growth of 40.3% and the contribution of ICPS and IPRC acquisitions) thus showing the relevance of the group’s strategic choices .

Processing activity also contributes to boosting the group’s recurring revenues, which represent, at the end of 2021, 64% of all revenues. Solutions activity also achieved good performance in 2021 with growth of +4.6% (in pro forma comparison), a performance achieved in the context still affected by the crisis at Covid.

Did the war in Ukraine and the sanctions affecting Russia affect your activities?
So far, we have no impact on our activities, although we have some global customers with global activity, specifically in these regions.

On what levers will the group’s growth over the next three to five years be based?
The group’s growth will be based on a mix of strong organic growth that should return to historical levels prior to Covid and also on our external growth strategy. Organic growth will be based on our ability to gain new markets by strengthening our Delivery Centers, and on our capacity for change with, in particular, the release of Version 4 of our PowerCARD solution, which should be forms a real growth driver for the group in view of its advancement in performance and technology.

It should be noted at this stage that our PowerCARD solution is classified as a SPARK technological leader, thus confirming HPS’s positioning as a major player in our industry worldwide.

What is your plan for penetrating the American market and how about territories where prospecting is in the advanced stages?
For the US market, we are in advanced talks with a global partner to prepare an offer tailored to this market. So far, the regions of Europe, Asia Pacific and South Africa are forming preferred close markets for the HPS Group with significant opportunities being discussed. Of course, we remain accommodating to all opportunities that may arise in other regions of the world.

The Covid crisis has opened the eyes of companies to digital emergencies. How does HPS support these mutations?
The Capgemini World Payment Report, published in 2020, outlines key transitions in our payment industry and highlights the changes in consumer habits materialized by the strong use of digital in B2B transactions and the digital transition. at the expense of cash. HPS, first of all through its R&D policy, incorporates its changes into its product roadmap to take them into consideration.

Also, HPS set up, in 2022, a new organizational entity, Business Innovation, whose role is to develop solutions and offerings adapted to PowerCARD technology to support the rapid change in the payment industry that favors with the emergence of new players and/or new business models.

What synergies are expected from the partnership with Capgemini?
This strategic partnership with Capgemini covers two aspects: one works on Capgemini’s ability to quickly make available resources to support the Group in its ability to deploy its solutions to Tier 1 clients. The other side is commercial and has to do with the possibility that Capgemini could market PowerCARD to its customers.

Do you feel that other technology companies have tensions in terms of recruitment and what about the consequences of deploying your strategic plan?
It is true that the HPS team remains attractive and always manages to attract the best talents in Morocco. Admittedly, the IT sector is under pressure around Human Resources, both from the internal market and from the international market. We implement an HR policy that aims to conserve our resources through appropriate training programs, motivation career plans and attractive compensation plans. We remain convinced that we can continue our development in the future with the talents we will have with us.

Mobile payment: “It takes a concerted effort”

“We believe that this is a concerted effort that should be undertaken by all stakeholders of this project (banks, financial institutions and Fintech) to accelerate mobile payments in Morocco. There is important work that needs to be done to create an ecosystem favorable to mobile payments to accelerate change in consumer and merchant behavior.Moreover, HPS, through its subsidiary HPS Switch, is working closely with all of these players, in partnership with Bank Al Maghrib to strengthen mobile payments in Morocco ”.

Frank Fagnon / ECO Inspirations

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