The Payments Group Holding Projects Exponential Growth Through 2028 with AI Expansion and E-Money License

The Payments Group Holding (PGH) has released updated preliminary financial targets for the next three years, projecting significant growth acceleration through 2028. The Frankfurt am Main-based holding company anticipates that the pending acquisition of 75% of The Payments Group companies (TPG), agreed upon in August 2024, will finalize in 2025, with full consolidation into the enlarged Group expected from 2026 onward.

TPG's gross transaction volume is forecasted to increase from 80 million EUR in 2024 to just under 100 million EUR in 2025. Growth momentum is expected to accelerate substantially through 2028, driven by the recently obtained e-money license, with transaction volume projected to reach between 800 million and 1.9 billion EUR. PGH expects the ratio of revenue to transaction volume to decrease over time due to new high-volume growth segments entering the portfolio.

Revenue projections indicate substantial expansion, with TPG's revenue expected to roughly triple to quintuple by 2028 from just over 7 million EUR in 2024. This represents annual growth rates ranging from approximately 30% to 60%, highlighting the company's aggressive expansion strategy in the payment technology sector.

PGH Group's EBITDA is projected to reach between 5 million and 12 million EUR in 2028, with 2026 estimates ranging between 2 to 2.5 million EUR. The holding company, with an estimated net asset value exceeding 20 million EUR, is not expected to contribute negatively to EBITDA. Instead, value increases from the Heritage VC portfolio and AI company building activities are anticipated to offset overhead costs.

The financial targets do not incorporate potential entry into the stablecoin business, which management is currently reviewing. While forecasting remains challenging, preliminary assessments suggest this venture could significantly increase or even shape the Group's EBITDA from 2027 onward, representing a substantial growth opportunity beyond current projections.

PGH has advanced its strategic commitment to artificial intelligence through Softmax AI, its AI company builder. Cognicare AI GmbH represents the first successful spin-off from this initiative, developing and operating AI-supported software assistance systems for the care sector. The system creates a digital ecosystem designed to relieve nursing staff burdens and improve resident safety in inpatient facilities.

Cognicare AI's system has demonstrated success during several weeks of pilot operation, with additional operations scheduled to follow shortly. Six other care facilities have expressed concrete interest without active marketing efforts, indicating strong market reception. The addressable target market encompasses approximately 11,000 inpatient care facilities across Germany, representing significant scaling potential.

Additional products and potential spin-offs are in development through Softmax AI, including Inspectos, a computer vision tool for component assessment and documentation, and Jobklar, an online AI job application trainer. Based on discussions with medium-sized companies, Softmax has recently initiated a promising new project technologically related to existing applications.

More information about The Payments Group Holding's operations and strategic direction is available at https://www.tpgholding.com.