Peppermint gets key regulatory backing in the Philippines to offer BizmoPay loans
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The company has received the green light to offer non-bank bizmoto micro-enterprise loans in the Philippines.
Fintech company Peppermint Innovation (ASX:PIL) has achieved a significant milestone in its core market of the Philippines with the award of a financial lending licence in the country.
The new license gives PIL the ability to execute on its primary strategy; providing an alternative non-bank micro-enterprise lending platform to Filipino customers.
Under licensing terms, Peppermint can offer alternative non-bank micro-enterprise loans to its qualified bizmoto agents, registered bizmoto network members and enterprise platform partners. Bizmoto translates roughly to “your business” in Tagalog.
The financial lending service has been branded as BizmoPay, and complements the commercialisation of Peppermint’s proprietary technology bizmoto mobile App platform.
The App targets the four key business sectors of mobile payments; eCommerce, delivery and logistics along with mobile financial services.
An initial 3-month pilot program will be rolled out to select bizmoto agents to ensure the back end of the bizmoPay system is fully integrated with its existing platform and that the application, approval and receival process is seemless.
Upon completion of the pilot program, the micro-enterprise loan service will be made available to more than 55,000 bizmoto agents.
The loan service will also be available to network members who qualify and agree to promote the wider adoption of bizmoto services and drive the use of the wider bizmoto ecosystem.
In further operational progress for Peppermint, earlier this month the company announced it had signed a strategic partnership with US-based TurnKey Lender to deliver all the backend support for bizmoPay.
TurnKey Lender’s AI solution provides all the funcitionality required to make the lending process fully digital.
Alternative non-bank lending markets are growing rapidly in the Philippines where, according to the Philippines central bank Bangko Sentral ng Pilipinas, more than 70% of the adult population is unbanked or underbanked.
Peppermint Managing Director and CEO Chris Kain told Stockhead the award of the financial lending licence means the company is well placed to leverage the growing uptake of technology among the Filipino population.
“We are currently witnessing widespread mobile internet usage in the Philippines, with almost 86% of the population using internet via their mobile devices,” Kain said.
“We are also witnessing a growing number of Filipinos that are ready to access alternative non-bank finance through mobile phone App lenders.”
Kain said bizmoPay provides a safe and seamless means for its bizmoto agents, network members and enterprise platform partners to acquiring micro loans to grow individual enterprises without having to access a recognised bank.
“Peppermint is committed to delivering an innovative technology solution to facilitate financial inclusion to the people of the Philippines, while also creating an opportunity for Filipinos to build a micro-enterprise and earn a living utilising our bizmoto App,” he said.
This article was developed in collaboration with Peppermint Innovation, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.