Payments Group Holding Projects Massive Growth Through 2028 with AI Expansion
The Payments Group Holding has updated its financial outlook through 2028, projecting transaction volume growth from 80 million EUR to potentially 1.9 billion EUR while expanding its artificial intelligence ventures through newly spun-off companies.
The Payments Group Holding (PGH) has updated its preliminary financial targets through 2028, anticipating significant growth following its planned acquisition of 75% of The Payments Group companies. The Frankfurt-based holding company expects the transaction, agreed upon in August 2024, to close in 2025 with full consolidation into the enlarged Group beginning in 2026.
TPG's gross transaction volume is projected to increase from 80 million EUR in 2024 to nearly 100 million EUR in 2025, with accelerated growth momentum expected through 2028. The company anticipates transaction volume reaching between 800 million and 1.9 billion EUR by 2028, driven by the recently obtained e-money license. However, PGH expects the ratio of revenue to transaction volume to decrease over time due to new high-volume growth segments.
Revenue projections show even more dramatic growth, with TPG's revenue expected to triple to quintuple by 2028 from just over 7 million EUR in 2024. This represents annual growth rates between approximately 30% and 60%. The PGH Group's EBITDA is forecasted to reach between 5 million and 12 million EUR in 2028, with 2026 projections between 2 to 2.5 million EUR.
The company's strategic commitment to artificial intelligence has advanced significantly with the successful spin-off of Cognicare AI GmbH, the first venture from Softmax AI, PGH's AI company builder. Cognicare AI develops, markets, and operates AI-supported software assistance systems for the care sector, creating a digital ecosystem to reduce nursing staff burdens and improve resident safety in inpatient facilities. Philipp Buchta, who brings extensive experience managing multiple inpatient care facilities, has been appointed as managing director.
The 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 any 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.
Beyond the current projections, PGH is evaluating potential entry into the stablecoin business, which management's preliminary assessment suggests could significantly impact or even shape the Group's EBITDA from 2027 onward. The holding company, with an estimated net asset value exceeding 20 million EUR, anticipates generating value increases from its Heritage VC portfolio and AI company building activities equal to its overhead costs, avoiding negative EBITDA contributions.
More information about the company's developments and strategic direction is available at https://www.tpgholding.com.