Boku has developed a platform that supports local payment methods (LPMs), connecting merchants with issuers around the world. Boku processes payments according to two methods:

1) Settlement: Boku provides the technical connection and settles the transaction

2) Transactional: Boku provides the technical connection but the merchant and issuer settle directly with each other.

The company earns a small percentage of the value of each transaction it processes, with a higher rate for the settlement method. Boku also charges fees for additional services such as currency conversion, early settlement and new integrations. In FY25, 66% of revenue was generated from Direct Carrier Billing (of which 11% was from Bundling) and 34% from digital wallets/account-to-account.

Near-term growth catalysts include new merchants starting to use the platform, existing merchants using new LPM connections and to a lesser extent, merchants adopting treasury services. As merchants expand into countries where cards are not the dominant payment mechanism, they need help connecting to local payment methods (LPMs).

Boku's payment platform supports multiple local payment methods: direct carrier billing, digital wallets and account-to-account (A2A) payments. LPMs currently account for just over half of e-commerce transaction value globally and this is expected to grow to 59% by 2028.

The primary risks facing the company include the loss of a major merchant (two merchants accounted for more than 10% of revenue, totalling 52% of revenue in FY25), regulatory non-compliance, competition, and the rate at which merchants grow and adopt additional services from Boku.