The Market Ltd (ASX: MKT) took a major step forward today with the announcement of Gumtree Payments, a new in-platform payment feature that promises to change the way users buy and sell on Gumtree. Through a strategic partnership with global payments giant Adyen (AMS: ADYEN), Gumtree will soon allow users to complete transactions directly within the platform. The integration, slated to go live in December 2024, will support major credit cards along with Apple Pay and Google Pay, addressing a long-standing need for secure, streamlined transactions within the Gumtree marketplace.
The financial upside is clear, with The Market estimating that the new feature could bring in between $0.5 million and $1 million in additional revenue in its first year, with expectations of reaching $2 million in the second year. This revenue projection comes as no surprise given Adyen’s success in driving transaction volumes and optimising payment flows for its clients. By embedding this payment technology, Gumtree effectively cuts out the need for third-party apps or manual payment steps, simplifying the purchase process and, in turn, encouraging more in-app transactions.
With Gumtree Payments, users will no longer need to coordinate payments through external platforms or rely on traditional bank transfers, a feature designed to keep transactions within the Gumtree ecosystem. Logtenberg highlighted that by removing these extra steps, Gumtree expects users to experience a smoother and faster transaction process, which has become increasingly vital for online marketplaces looking to retain competitive edge. “Our users can look forward to a fast and streamlined payment experience,” he said, pointing to the operational efficiency that Adyen’s technology brings.
With enhanced payment security, Gumtree aims to foster greater user engagement, reducing hesitation among buyers and sellers who may have been reluctant to complete transactions without direct payment support. The rollout of this feature follows Gumtree’s commitment to its “Transactional” product roadmap, with more features expected in the coming year as part of a broader strategy to become a safer, more comprehensive marketplace.
Today’s announcement also follows Gumtree’s recent partnership with tech company uWorkin, which is designed to expand its reach in the Australian jobs market. Signed in September 2024, the partnership enables Gumtree to tap into uWorkin’s advanced technology to enhance job listing and candidate management processes for its recruitment segment. Focused on key industries such as hospitality, food delivery, and trades, the uWorkin collaboration aims to make recruitment easier for employers and job seekers alike, with the integration expected to be fully functional by December 2024.
Logtenberg sees the recruitment platform as a major growth area for Gumtree. “Following the strong demand for better technology solutions in the recruitment space, Gumtree has decided to partner with uWorkin to improve and streamline the recruitment processes for its main clients,” he said.
Together, these two initiatives underscore The Market Ltd’s commitment to building Gumtree’s competitive strength in both the transaction and recruitment spheres. The Adyen-powered payment feature targets consumer concerns around transaction security, positioning Gumtree as a more trustworthy platform for buying and selling. Meanwhile, the uWorkin partnership bolsters Gumtree’s foothold in the job market, an area ripe for growth given the surge in demand for efficient recruitment solutions.
With Gumtree Payments going live in December, The Market Ltd’s revenue targets are grounded in the rising popularity of in-app payment solutions. It’s a calculated move that could transform Gumtree’s role within the Australian marketplace ecosystem, creating a compelling narrative for investors eager to see The Market Ltd unlock Gumtree’s potential.