Multiple companies in New Zealand are facing financial distress due to unpaid invoices from MyCommerce, a platform owned by the U.S.-based Digital River.
MyCommerce operates as a payment processing platform for independent software vendors (ISVs), collecting payments for software sales and retaining a commission before passing the remainder to the vendors. However, it appears that MyCommerce has ceased these payments.
Reviews indicate that since July 2024, a number of ISVs globally have not received payments for their sales, leading to mounting frustration among affected businesses. One local business owner claims his company is owed $50,000.
“Half the company was eliminated in July/August, and the remaining employees will be let go in waves as additional clients are terminated and departments are eliminated.”
“Many vendors are not being paid, and clients are up in arms that their funds are frozen.”
According to a report from The Register, “Digital River is experiencing negative financial trends, potential covenant breaches, and liquidity issues. It also holds significant external debt, which has been refinanced and extended on a number of occasions.”
This situation has drawn comparisons to a “sinking Titanic,” reflecting the dire financial state of Digital River.
In addition to its financial woes, Digital River has recently modified its resale agreements, which have impacted New Zealand businesses. Key changes include extending the payment cycle from 30 days to 60 days and raising the repayment threshold from US$2,500 (NZ$4,142) to US$10,000. However, vendors such as StationPlaylist.com and at least one other New Zealand business did not receive any payments during that cycle, despite having met the required value threshold.