PaySauce Quarterly Market Update – June 2021

PaySauce processes over 50% more payroll Lower Hutt, New Zealand - 8 July 2021 Employment fintech PaySauce (NZX:PYS) finished the first quarter of FY22 with accelerated customer and revenue growth. PaySauce acquired the business and assets of SmoothPay during the quarter. PaySauce is in the process of transitioning the accounting policies and reporting metrics of SmoothPay to ensure consistency with those reported by PaySauce. PaySauce will include the business metrics of the SmoothPay business in the PaySauce quarterly update in September. None of the metrics in this update include any of the business operations of SmoothPay. Processing fees from customers grew 44% YoY, up from the 42% YoY increase in the quarter to March. The growth in processing fees has arisen from both a 39% increase in customer numbers and a 51% YoY increase in the value of payroll processed through the PaySauce platform compared to the quarter to June 2020. Total recurring revenue for the June 2021 quarter increased 36% YoY. This measure includes both processing fees and interest income. The continued low interest rate environment has caused interest income to decline 33% YoY. At $31k, interest revenue was just 5% of the total Recurring Revenue this quarter (June 2020 Quarter: 10%; $46k) despite the float of funds held on behalf of customers increasing in line with customer growth. The number of employees paid through the PaySauce platform increased 44% YoY to over 20,000. CEO and co-founder Asantha Wijeyeratne, said the growth in employees demonstrates the evolution from an agri-focused payroll provider to an industry agnostic fintech. "More and more larger employers are coming to PaySauce to help them run the people-side of their business. Businesses in the construction and hospitality sectors in particular are seeing the value of staff entering their timesheets on their app and payments being automated when the pay run closes. By making it easy, we free them up to spend their time where it matters - running their business." "For me, the most pleasing element is seeing 20,000 employees on our platform. Having introduced PayNow this quarter, knowing that those employees can access their earned wages before payday with no costs means we can make a real difference to those currently using predatory payday lenders." (Please find additional tables, graphs and important footnotes in the attached PDF) KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER ? Processing fee revenue up 44% to $581K ? Total recurring revenue up 36% to $612K ? Total employees paid through PaySauce up 44% to 20,159 ? Number of payroll business customers up 39% to 3,933 For more information about the quarter results to 30 June 2021, please contact investor@paysauce.com. ABOUT PAYSAUCE PaySauce is a SaaS fintech platform providing solutions for people at work. We give employers the technology to digitally onboard, pay and manage employees from any device. Our platform includes rosters, mobile timesheets, payroll calculations, banking integration,automated payments, PAYE filing, labour costing, automated general ledger entries and digital employment contracts. www.paysauce.com End CA:00375284 For:PYS Type:MKTUPDTE Time:2021-07-08 08:30:37