RYVYL Secures Major Payments-as-a-Service Contracts, Set to Onboard Nearly One Million New Accounts in the next 12 Months

Rhea-AI Summary

RYVYL Inc. (NASDAQ: RVYL) has secured two significant Payments-as-a-Service (PaaS) contracts through its subsidiary RYVYL EU, projecting to onboard nearly one million new accounts over the next 12 months.

The first contract with an international money service provider has already onboarded 1,000 accounts, with expectations to add 50,000+ more accounts in 2025. The second agreement, with a major digital banking platform operating in 180 countries, aims to onboard 900,000 accounts starting Q2 2025.

These contracts support RYVYL's 2025 revenue guidance of $80-90 million. The company expects to achieve positive adjusted EBITDA and operating cash flow in H2 2025. However, this guidance assumes retaining RYVYL EU subsidiary, which is currently subject to a pre-funded asset sale agreement ending April 23, 2025 (extendable to May 23, 2025). RYVYL intends to terminate this sale by paying $16.5 million.

Positive

• Secured contracts to onboard nearly 1 million new accounts
• Already onboarded 1,000 accounts with 50,000+ more expected in 2025
• Projected revenue of $80-90 million for 2025
• Expected positive EBITDA and operating cash flow in H2 2025

Negative

• RYVYL EU subsidiary shares in escrow due to pre-funded asset sale agreement
• Must pay $16.5 million to terminate asset sale agreement
• Potential $500,000 payment needed for 30-day extension if termination deadline missed

Insights

Financial Analyst

RYVYL's announcement represents a significant milestone in the company's expansion strategy, with two major Payments-as-a-Service contracts set to dramatically scale their account base by nearly one million new accounts over the next 12 months. The first contract has already demonstrated traction with 1,000 accounts onboarded and 50,000+ more expected in 2025, while the second agreement with a global digital bank will drive the bulk of growth with 900,000 new accounts starting Q2 2025.

These contracts provide strong validation of RYVYL's technology and market position, particularly in serving cross-border payment needs across Europe and North America. The company's ability to secure a partner processing transactions across 180 countries signals competitive advantages in multi-currency settlement and compliance expertise.

Financially, these deals reinforce RYVYL's 2025 revenue guidance of $80-90 million and set up a clear path to positive adjusted EBITDA and positive operating cash flow in H2 2025. The improving operational efficiencies and expanding gross margins indicate the business is achieving essential scale benefits.

The disclosure about the pre-funded asset sale agreement warrants attention - RYVYL plans to terminate this arrangement by paying $16.5 million to retain full ownership of RYVYL EU, the subsidiary securing these contracts. This strategic move preserves the value of these new agreements, though investors should note the substantial capital commitment required by the April 23 deadline (or May 23 with extension).

First contract has onboarded over 1,000 accounts with 50,000+ more accounts expected in 2025

Second contract to onboard over 900,000 accounts over a 12-month period beginning Q2 2025

These new contracts reinforce 2025 revenue outlook of $80 million to $90 million

SAN DIEGO, CA, March 20, 2025 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading provider of cutting-edge payment solutions, announced that its subsidiary RYVYL EU has secured two Payments-as-a-Service (PaaS) contracts, which are expected to onboard nearly one million new accounts over the next 12 months. These agreements significantly expand RYVYL’s footprint in Europe and strengthen its long-term growth trajectory.

Fredi Nisan, CEO of RYVYL, said: “Following the successful launch of our first digital Payments-as-a-Service (PaaS) contract, we have now secured a second, larger partnership with a fully digital bank serving tens of millions of customers across 180 countries. With over 80% of its transactions involving cross-border payments, this partner chose RYVYL PaaS for our extensive presence in Europe and North America, robust security infrastructure, and seamless multi-currency settlement capabilities.”

“These agreements further validate our ability to serve high-growth financial platforms and support their global expansion. Our advanced payment solutions provide seamless onboarding, compliance expertise, and the operational scale required to power modern digital banking ecosystems.”

• The first contract, with a leading international money service provider, offers both virtual and physical payment cards managed through RYVYL’s payments platform and mobile app. RYVYL has already successfully onboarded 1,000 client accounts, with over 50,000 more accounts expected in 2025.
• The second contract, with one of the world’s largest fully digital banking platforms, is projected to onboard 900,000 new customer accounts over a 12-month period, starting in Q2 2025. API integrations and testing have already started, and initial onboarding is set to begin in the coming months.

“These contracts reinforce our 2025 revenue guidance of $80 million to $90 million and are also expected to contribute operational efficiencies and increasing gross margin that will drive positive annual adjusted EBITDA and positive operating cash flow in the second half of 2025,” added Nisan.

The foregoing guidance is based on the Company's continuation of the business, as currently conducted. On January 24, 2025, the Company entered into an agreement with a financing source that was structured as a pre-funded asset sale with a 90-day closing period, which ends on April 23, 2025 and may be extended an additional 30 days to May 23, 2025, if the Company pays $500,000 for such extension. Shares in the Company's RYVYL EU subsidiary were placed in escrow during the closing period. Although there are no guarantees, the Company intends to terminate the asset sale within the closing period by paying $16.5 million in consideration of such termination. The Company's financial guidance for 2025 is based on fully retaining its RYVYL EU subsidiary.

About RYVYL

RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

Cautionary Note Regarding Forward-Looking Statements

This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding timely payment of the second tranche, the benefit to stockholders from the repayment of the Note and repurchase of the Preferred Stock, and the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee's ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries - particularly industries with heightened cash reporting obligations and restrictions - as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These statements are also subject to any damages the Company could suffer as the result of previously announced litigation or actions of any governmental agencies. These and other risk factors affecting the Company are discussed in detail in the Company's periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

Disclaimer Regarding Financial Information

The financial information presented in this press release, for the year ended December 31, 2024, is based on preliminary financial statements prepared by management, for the year ended December 31, 2024. Accordingly, such financial information may be subject to change. All such information contained in this press release will be qualified with reference to the audited financial results for the year ended December 31, 2024, which the Company intends to release on or before March 27, 2025, and in any event by March 31, 2025, and will be posted on www.sec.gov. While the Company does not expect there to be any material changes to the financial information provided in this press release, any variation between the Company’s actual results and the preliminary financial information set forth herein may be material.

IR Contact:
David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com

FAQ

How many new accounts will RYVYL's new PaaS contracts bring in 2025?

RYVYL's two new contracts will bring nearly 1 million new accounts, with 50,000+ from the first contract and 900,000 from the second contract starting Q2 2025.

What is RVYL's projected revenue guidance for 2025?

RYVYL (RVYL) projects revenue of $80-90 million for 2025, supported by their new PaaS contracts.

When will RVYL achieve positive EBITDA according to their guidance?

RYVYL expects to achieve positive adjusted EBITDA and operating cash flow in the second half of 2025.

What is the status of RYVYL EU's asset sale agreement?

RYVYL EU is under a pre-funded asset sale agreement ending April 23, 2025 (extendable to May 23), which the company plans to terminate by paying $16.5 million.