Repay (RPAY) is a “fintech” company that offers a a chance to invest in a small-cap company with enormous potential upside potential. The firm runs a software platform that handles payment processing, explains Frank Curzio, growth stock expert and editor of Curzio Research Advisory — and a participant in the upcoming MoneyShow virtual event, August 3-5. Register for free here.

It offers its software as a service (SaaS) — the best business model in the world. It rakes in a steady stream of revenue as its customers use the platform. And Repay already has over 14,000 customers using its platform via its website or mobile app.

The company focuses on loan repayment and business-to-business (B2B) payments. Both of these areas are in the process of moving from traditional payment models (like using cash and checks) to digital payments. 

Digital payments are obviously a huge step forward. Most people prefer using a credit or debit card for making purchases… and the same goes for businesses. Checks and wire transfers can take days to clear. By comparison, a digital payment (via credit card) takes a few seconds. 

Over the past two years, the company has more than doubled its business. Last year, it handled $10.7 billion — up from $5.2 billion in 2017. 

Its latest earnings report showed no signs of a slowdown. During the first quarter of 2020, card payment volume grew to $3.8 billion. That’s up 58% vs. the same period a year ago. Management removed its guidance for 2020 due to the effects of the coronavirus.

I think removing guidance is a super-conservative measure, especially since I expect the auto loan industry — the company’s main loan repayment area — to see minimal effects from the pandemic.

More importantly, Repay is in great shape to keep growing its business. If the company keeps growing, it could become an acquisition target for a bigger tech or financial company. That means our upside is easily in the triple-digits.

Ideally, I’d like to own Repay for the long-term — about two or three years. If its growth plans work out, this could be a 5x or even 10x investment for us. The company’s next earnings report will happen next month, so let’s start by buying a 1/2 position.

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