What happened

Shares of GreenBox POS (NASDAQ:GBOX) surged as much as 20% on Tuesday morning after the company significantly boosted its guidance for payment processing volumes this year. At 11 a.m. EST, the stock was up 13%.

So what

The fintech company, which offers blockchain-based payment services, now expects to process $1.2 billion in payments in 2021, or twice as much as GreenBox's initial outlook of $600 million. Payment processing volumes in the first quarter have been much higher than expected, leading to the increased forecast for the year. The higher volumes should also pave the way for improved operating margins and new smart-contract token volume, according to GreenBox.

Green stock chart going up

Image source: Getty Images.

GreenBox reported fourth-quarter earnings about a week ago, which included $131 million in processing volume. The company recently completed a $50.1 million public offering and uplisted to the Nasdaq. Shares had previously traded over the counter.

Now what

"Our original 2021 projections were based more on Q4 2020 processing volume levels and proved to be too conservative," CEO Fredi Nisan said in a statement. "Given the visibility we now have from the first quarter, we are comfortable now raising our full year estimates."

GreenBox did not update other aspects of its 2021 outlook, but previously  said that revenue was expected to be $45 million in 2021 with net income of approximately $18 million. Those estimates were based on processing volumes of $600 million.

Nisan added, "We are encouraged by the rapid adoption of our proprietary blockchain technology and believe the launch of our smart-contract token technology may pave the way for additional revisions to these projections."

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