Remitter Completes Acquisition of US Receivables Leader Mercantile Adjustment Bureau

Tempe, Ariz. — Digital Bill payment
platform Remitter has finalized its purchase of Mercantile Adjustment Bureau
following a successful pre-IPO USD $12m cap raise led by Canaccord Genuity. The
raise was also backed by Allium Capital and Casey Capital.

Remitter is a white-label communications platform,
founded in Australia, which uses AI to optimize 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 up to 280 percent, significantly
improving cash flow.

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, as
well as the healthcare sector. The acquisition of Mercantile is anticipated to
propel the company’s revenue from USD $2 million in 2021 to USD $18.4 million
in 2022, according to company forecasts.

“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 payment process is
critical for creditors to get right. “The combination of Remitter’s
capabilities and Mercantile’s platform will create a new gold standard,” according
to Mike Ginsberg, President and CEO of Kaulkin Ginsberg who advised Mercantile
in this transaction.

Remitter entered the US market in 2020,
underpinned by two years of development, collaboration with clients to ensure
the optimal feature set and compliance across USA states and territories. The
business has already amassed more than 20 “blue chip” customers,
including a significant take-up in digitally native customers.

Mercantile Adjustment Bureau is recognized
as a leader in receivables management services. It services many of USA’s most
recognized brands and verticals which includes: Fortune 100 to Fortune 500
banks, financial institutions, retailers, universities, and auto industries.

“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,”
said Simon Scalzo, Executive Director, Remitter. 

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 overall[i]. 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 revenue[ii].

About Mercantile

Founded in 1934, Mercantile Adjustment
Bureau is recognized as a leader in receivables management services. It
services many of USA’s most recognized brands and verticals which include
Fortune 100 to Fortune 500 banks, financial institutions, retailers,
universities, and healthcare providers.

About Remitter

Remitter is a white-label communications platform
which uses artificial intelligence to optimize customer engagement and enhance
the recovery of accounts receivables. By analyzing behavioral heuristics to
automate each customer’s experience with branded messaging and payment options,
Remitter increases customer recoveries by an estimated 280 percent.

[i] IbisWorld Debt
Collection Agencies in the US – Market Size 
2005–2027

[ii] Kaulkin Ginsberg Accounts Receivable Management: An Industry
Poised for Growth