Patrick Ennis's questions to Repay Holdings (RPAY) leadership • Q3 2024
Question
Patrick Ennis asked about the float revenue associated with settlement accounts, specifically inquiring who typically earns that income (Repay or its sponsor bank) and whether it is a factor in negotiating sponsor bank fees.
Answer
CFO Tim Murphy clarified that Repay does not currently earn float revenue. He explained that the funds are held in what are essentially merchant accounts with a delayed settlement, and therefore Repay holds the cash but does not earn interest on it. He stated that sponsor bank fees, which flow through cost of goods sold, are a separate discussion. However, he did mention that evaluating opportunities to generate float revenue is something the company could consider in the future.