$APCX Competition Is In Its FavorWith the expected launch of the Federal Reserve’s FedNow program in July, AppTech Payments Corp. (NASDAQ: APCX) stands in a prime position to capitalize on the anticipated launch due to the increased competition in that space. With 18 patents in SMS-to-pay services, APCX has the potential to secure a lot of deals from the instant payment market as more players in that space might look to enhance their platforms to withstand the competition. On that note, APCX has been successful in that department as recently secured 2 deals. Meanwhile, APCX is set to join the Russell Microcap index on June 26 – which might see APCX stock soaring this week.
APCX Fundamentals
FedNow Launch
Earlier in May, the Federal Reserve announced that the long-awaited FedNow would be launched in July. FedNow will enable financial institutions to offer a modern instant payment solution that is created and backed by the US government. While the FedNow launch will increase competition in the instant payments market, APCX can benefit greatly from the increased competition.
This competition can lead to APCX realizing more deals to create or improve more instant payment apps that are looking to gain an edge over existing competitors and the newly launched FedNow since APCX’s patented text-to-pay can provide a much-needed advantage over other competitors.
New Partnerships
With this in mind, APCX has been busy securing deals lately with the company entering into a strategic partnership with InstaCash to build and develop InstaCash’s new mobile-to-mobile payment system which is one of many deals APCX could get with the launch of FedNow approaching.
InstaCash’s new instant payment app will be a competitor to apps like Venmo and Zelle but with lower transfer fees. Furthermore, APCX will own 7% of InstaCash shares which means that if InstaCash can capture a part of the instant payments market, APCX will see great returns from the partnership.
Additionally, APCX has entered another partnership with Broadnet Technologies, a global leader in business messaging solutions. The new partnership will help APCX penetrate the US marketplace for Text-to-pay since Broadnet has over 60,000 customers.
Furthermore, APCX’s text-to-pay will be integrated into Broadnet’s Easy Paperless, which allows businesses to print, scan, and send documents to a mobile phone via SMS link. Through Broadnet’s global reach, APCX will see an overall increase in text-to-pay technology adaptation which in turn could boost its revenues.
Russell Microcap Index
Another reason APCX stock could run this week is its official inclusion in the Russell Microcap Index on June 26 after it was announced to join it back on June 2. Following the announcement APCX stock ran almost 10%, which means that the stock could run once more on June 26, when it officially joins the Russell Microcap Index due to the Russell effect and the institutional interest it might receive. In light of this, APCX stock is one to watch closely this week.
APCX Financials
In its Q1 2023 report, APCX’s assets decreased 1.6% QoQ from $12.5 million to $12.3 million and its cash and cash equivalents decreased 41% QoQ from $3.4 million to $2 million. APCX’s total liabilities decreased by 50% QoQ from $5 million to $2.5 million.
Revenue also decreased 14% YoY from $104 thousand to $89 thousand. Operating costs decreased almost 36% from $5.6 million to $3.6 million, which contributed to the operating loss decrease of 37% YoY from $5.6 million to $3.5 million. In this way, APCX’s net loss decreased 42% YoY to $3.1 million.
Technical Analysis
APCX stock’s trend is neutral with the stock trading in a sideways channel between $1.62 and $1.75. Looking at the indicators, the stock is trading above the 50, and 21 MAs which are bullish indications but is trading below the 200 MA which is a bearish indication. Meanwhile, the RSI is neutral at 55 and the MACD is neutral as well.
As for the fundamentals, APCX stock has two major upcoming catalysts in its inclusion in the Russell Microcap Index and the launch of FedNow. Given the potential exposure the stock might receive and the additional deals it could secure, APCX stock may be setting up for a major run this week as more investors take notice of the company’s potential.
APCX Forecast
With the launch of FedNow approaching, the instant payments space may witness a huge change and APCX’s patented text-to-pay technology could lead to it securing more deals. Furthermore, APCX has recently entered two important strategic partnerships with InstaCash and Broadnet. That coupled with the recent inclusion in the Russell Microcap Index makes APCX stock a stock worth watching this week.
