Peppermint launches bizmoPay, a microloan platform serving a potentially huge market in the Philippines
The launch of bizmoPay today follows the granting of a financial lending license to Peppermint in July, and a highly successful pilot program.
Fintech company Peppermint Innovation (ASX:PIL) is up 10pc this morning after announcing the long-awaited commercial rollout of its micro-enterprise loan platform, bizmoPay.
The ‘phase 1’ commercial launch of bizmoPay will now allow any of bizmoto’s 56,000 agents to access the three bizmoPay micro-loan products via its mobile bizmoto app.
The launch today came following a regulatory licence approval in July, and an extremely successful three-month pilot program designed to test the platform, and ensure a seamless integration of its bizmoPay program with the bizmoto mobile app.
The pilot program yielded significant results, drawing in more than 359 loans across the three different types of loans – Platinum Plus, Platinum and Silver.
With the launch now complete, Peppermint will seek to launch a comprehensive marketing campaign over the next three months to promote it, targeting its 56,000 plus registered bizmoto agents.
The company says it aims to issue 1,000 loans to bizmoto agents during this three-month period.
“We are already witnessing strong demand for our micro-enterprise loan products, so we’re confident of signing up another 1,000 loans during the next 90-day period,” said Peppermint CEO, Chris Kain.
Based on data analysis from the first 45 days of the bizmoPay pilot program, loan recipients on average increased their transactional volume by approximately eight times across the bizmoto ecosystem of services.
Several agents significantly outperformed the average transactional volume during this period, including 20 agents who performed more than 50 transactions.
These transactions represent an additional $22 million per annum in revenue if extrapolated across Peppermint’s target of 56,000 registered bizmoto agents.
Peppermint’s initial target is to expand the bizmoPay platform to these 56,000 agents, and to issue $30m over the next three years.
“We will be supporting our commercial roll-out of the bizmoPay program with a strategic marketing campaign during the next three months targeted at our agent base,” said Kain.
Following the completion of today’s launch, Kain said the next level of regulatory licensing that Peppermint would be chasing is a Philippines Electronic Money Issuer (EMI) licence.
With an EMI licence in place, he believes that Peppermint could turbocharge its capabilities in the digital transaction space, particularly when combined with the loans it’s already able to make.
The addition of an EMI licence will bring exponential growth to the bizmoto ecosystem, Kain said.
“The bizmoto ecosystem will then be able to facilitate any e-money transaction and service open-loop e-wallet accounts, providing Filipinos with a convenient and secure way to receive digital money and services.
“Every Filipino could then apply for a bizmoPay loan, paid directly to their bizmoto e-wallet to enable seamless transactions across the bizmoto ecosystem.”
The non-bank lending space in the Philippines is currently undergoing massive changes, especially in the mobile app space where users have exploded as more people access non-bank loan finance through their mobiles.
Peppermint meanwhile, has just completed a solid last quarter and is well funded, with a strong cash position in the bank of $2.7m at quarter end.
Its shares surged 18% last week following a deal with Dragonpay — one of the largest online payment gateway platforms in the Philippines.
Under the deal, the bizmoto service will become a merchant within the Dragonpay platform, giving PIL immediate and direct access to its massive network of banks, EMI-wallet providers, and remittance/payment centres to undertake cash-in, fund transfers and payments.
This article was developed in collaboration with Peppermint, 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.