Nuvei (TSX:NVEI)(NASDAQ:NVEI) shares were up almost 10% on Tuesday after the payment solutions provider announced a partnership with Flow. In the partnership, the company will use the Web3 platform for “frictionless” non-fungible token (NFT) purchasing.
What happened?
Nuvei stated it plans to use Flow’s “next-generation, environmentally friendly blockchain” for developers to build crypto and crypto-enabled businesses as well as create digital assets. This will allow users to offer the ability for cryptocurrency payments on their platforms.
The new deal will also allow users to pay with FUSD, which is the “most prominent USD-based stablecoin on Flow.” About 35% of NFT traders use Flow’s blockchain capabilities. So. the new deal now offers NFT traders to trade and purchase all in one platform.
So what?
It’s the most positive movement Nuvei has seen since a short-seller report came out last year against the payment company. The Spruce Point Capital Management report stated the company’s metrics were incorrect, and its executives falsified their credentials.
Shares dropped by 60% at the news and remain far lower than 52-week highs. Add in a selloff of tech stocks with worries the United States Federal Reserve will raise interest rates, and you’ve got a serious problem for Nuvei shareholders.
So, this latest news is finally some good news for the company — one that the global payment platform needs right now. Nuvei made its mark dealing with popular industries like gaming and cryptocurrency. These have sometimes been touted as “risky.” But one person’s risk is another person’s opportunity.
Now what?
Analysts remain confident that the future is with these payment platforms. Nuvei now has a strong place in this market, making partnerships to stay ahead of the game. There is risk there, true, but Nuvei continues to seek out every opportunity it can to make cash. And it’s been doing quite well.
Now, with an incredible international presence, Nuvei is certainly one to keep on your watchlist. Shares are still quite low compared to both 52-week highs and analyst consensus estimates. Should it reach those estimates, Nuvei has potential upside of 77% as of writing.
