The Payments Group Holding Projects Massive Growth Through 2028 with AI Expansion
TL;DR
PGH's acquisition of TPG positions it for market leadership in embedded financial products with projected transaction volume growth from 80 million to up to 1.9 billion EUR by 2028.
PGH will consolidate TPG from 2026, projecting 30-60% annual revenue growth and EBITDA reaching 5-12 million EUR by 2028 through e-money licensing and new growth segments.
PGH's Cognicare AI reduces nursing staff burdens and improves resident safety through AI assistance systems, addressing needs across 11,000 German care facilities.
PGH's AI company builder Softmax AI spun off Cognicare AI and is developing computer vision tools and job application trainers while exploring stablecoin business opportunities.
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The Payments Group Holding (PGH) has released updated financial targets projecting substantial growth through 2028, driven by its pending acquisition of The Payments Group companies and expansion into artificial intelligence applications. The Frankfurt-based holding company anticipates that the acquisition of 75% of TPG, agreed upon in August 2024, will finalize in 2025, with full consolidation into the enlarged group beginning in 2026.
TPG's gross transaction volume is expected to increase from 80 million EUR in 2024 to nearly 100 million EUR in 2025, with accelerated growth momentum projected through 2028 following the recent acquisition of an e-money license. The company forecasts transaction volume reaching between 800 million and 1.9 billion EUR by 2028, though the ratio of revenue to transaction volume is expected to decrease over time due to new high-volume growth segments. Revenue projections indicate a three to fivefold increase by 2028 from just over 7 million EUR in 2024, representing annual growth rates between 30% and 60%.
PGH Group's EBITDA is projected to reach between 5 million and 12 million EUR in 2028, with 2026 estimates ranging from 2 to 2.5 million EUR. The holding company, with an estimated net asset value exceeding 20 million EUR, expects to generate value increases from its Heritage VC portfolio and AI company building activities that will offset overhead costs. These targets do not include potential entry into the stablecoin business, which management indicates could significantly shape the Group's EBITDA from 2027 onward, though this remains under review.
The company 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 AI-supported software assistance systems for the care sector. The system creates a digital ecosystem designed to reduce nursing staff workload and enhance resident safety in inpatient facilities. Philipp Buchta, an experienced care facility manager, has been appointed managing director of the venture.
Cognicare AI's system has demonstrated success during several weeks of pilot operation, with additional implementations planned shortly. Six other care facilities have expressed concrete interest without active marketing efforts, targeting an addressable market of approximately 11,000 inpatient care facilities in Germany. Additional products and potential spin-offs include Inspectos, a computer vision tool for component assessment and documentation, and Jobklar, an online AI job application trainer. Softmax has recently initiated a promising new project based on discussions with medium-sized companies, building on technology related to existing applications.
More information about the company's developments and strategic direction is available at https://www.tpgholding.com. The original release detailing these projections and initiatives can be viewed at https://www.newmediawire.com.
Curated from NewMediaWire
