08 Dec GTY- Transforming Government and Utility Payments through SaaS/Cloud Solutions
CityBase, a unit of GTY Technology Holdings Inc (NASDAQ: GTYH), which provides Software-as-a-service (SaaS)/Cloud solutions for government agencies, public sector and utility companies, announced an agreement with the City and County of Denver. The agreement is for not only unifying both online and in-person payments across the city-county, but also to modernize and streamline online payments and point of sale cashiering, a move that will benefit more than 716,000 residents.
The aim is to create a platform that will enable multiple payments such as parking citation, property taxes, court fees, licensing and permits and a plethora of other services, to be checked out using a single transaction, through an online virtual cart. The solution is a win-win, for the customers as well as the front-line and backend staff, as it will make the process much more efficient and cost-effective.
Mike Duffy, CEO and Founder of CityBase stated
“Government technology must be dependable and available to all residents, all the time. We’re eager to partner with Denver to realize this mission, with innovative technology that drives modernization and process improvements.”
In October 2020, the Company had entered into a partnership with the Village of Mount Prospect, IL for simplifying the online payment of residents by providing a no-contact payment kiosk that can cater to water, sewer, and refuse utility payments. The plan is to extend the services offered to encompass parking tickets and food and beverage, hotel/motel, amusement, and municipal motor fuel taxes in the future.
GTY Technology Holdings Inc (NASDAQ: GTYH)
Market Cap: $215.26M; Current Share Price: 4.02 USD
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Industry
SaaS (Software-as-a-service) is making inroads and revolutionizing the idea of how business is conducted. Information storage and access remains a very crucial requirement for the success of any entity, hence the need for a faster, convenient and cost-effective solution is the need of the hour. This is especially true in case of utilities management as data that they generate is humongous.
SaaS-based platforms offer a convenient way for delivering services over the internet, thereby reducing costs and bringing about operational efficiency. The software is operated and maintained through cloud storage and can be availed for a subscription fee by the user, thereby eliminating the need to incur expenses for acquiring licenses and up gradation costs. The greatest advantage is the universal access to services through a mobile, desktop or smartphone for the end-user. The organizations only pay for what they use, and can easily scale their storage or access as the need arises.
Payment-as-a-Service (PaaS) leverages the principles of SaaS to streamline digital payments through sources such as websites, mobile wallets or other applications. It provides secure transactions from the convenience of the customer’s home or office and gives a choice of payment options ranging from credit card, debit card or internet banking. According to a report by Grand View Research, the Global Payment-as-a-Service Market that was worth USD 6.2 billion in 2019 is likely to grow at a CAGR of 16.9% from 2020 to 2027.
Digital Payments are gaining popularity owing to COVID-19, the need for cashless transactions and lockdown restrictions have compelled people to rely on contact-less purchase of services and products. Digital payment options such as mobile wallets, internet banking etc are also helping simplify transactions for consumers as well as service providers.
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Company
CityBase was acquired by GTY Technology Holdings in February 2019 in exchange for $160 million in cash and stock. The Company modernizes the payment processes in local government-owned utilities by digitalizing manual payment processes, through kiosks and online payment options, besides offering round-the-clock access.
The Company provides a range of solutions encompassing digital services, payment solution, and API Development for government and utilities. GTY has an array of cloud-based solutions that include platforms like Bonfire (procurement), eCivis (grant management), OpenCounter (permitting) and Questica and Sherpa (Budgeting).
CityBase offerings include Kiosks for in-person payments, point of sale cashier assisted transactions, mobile and web payments to name a few. In September 2020, the Company entered into an agreement with the city of Austin to link various departmental billing systems with a common payment user interface, which would make the process more efficient and facilitate back-end reconciliation and service integrations.
Furthermore, the Company partnered with the City and council of San Francisco for creating an online recreational cannabis business licensing system that would offer a comprehensive platform right from submission of applications to payment of applicable fees.
GTY Holdings is focused on redefining citizen engagement and resource management through its six subsidiaries that cover procurement, payments, grant management, budgeting, and permitting. The Company is the first one to offer intuitive cloud-based solutions in the government industry.
Key Takeaways
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References
https://finance.yahoo.com/news/denver-selects-citybase-unified-payments-150000241.html
https://www.grandviewresearch.com/industry-analysis/payment-as-a-service-market
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