Peppermint strikes key distribution deal for its market-leading bizmoto payments network
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The company’s multi-channel bizmoto ecosystem is now live across all four of its targeted business sectors.
Peppermint Innovation (ASX:PIL) is picking up momentum as it builds out a leading mobile payments platform in its core market of the Philippines.
The company had some more positive news flow this morning, executing on a strategic distribution deal that will give Filipino customers simplified access to accident and life insurance products.
Under the terms of the deal, Peppermint will offer three fully underwritten insurance products in partnership with Cebuana Lhuillier Insurance Solutions.
Based in the Philippines, Cebuana is an authorised Insurance Agency recognised by the Insurance Commission of the Philippines.
The products will be made available through ‘bizmoProtect’ – the insurance division of Peppermint’s multi-channel bizmoto mobile app.
Peppermint recently executed the launch of bizmoto App 2.0 on Android, with iOS distribution to follow.
While Cebuana will supply the licensed insurance products, Peppermint will assume responsibility for marketing/promotions, collecting premiums and carrying out the requisite KYC (know-your-customer) measures.
In return, PIL will earn a five per cent premium for all premiums up to Php50,000 (~$1,300), and a 10 per cent fee for all amounts Php50,000 and above.
The revenue-share arrangement will also see Peppermint receive 60 per cent of the increase for any product mark-up across the three micro-insurance products — Basic, Plus and Prime.
Peppermint’s managing director and CEO Chris Kain said the new deal aligns with the company’s strategy to generate strong unit economics, while also providing a social impact.
Simpler access to insurance products can make a difference in the Philippines, he said, where many families are wholly reliant on one wage earner.
“If that person’s ability to earn a wage is compromised, either through injury or sickness, then the whole family suffers,” Kain said.
Kain said Peppermint also has a key distribution advantage through its agent network, using the bizmoto app as a platform to give more people simple access to its financial ecosystem.
The launch of the insurance channel marks the first product within the bizmoto financial services vertical.
As a result, the “bizmoto ecosystem is now live across all of the four key targeted business sectors — mobile payments, eCommerce, delivery and logistics and financial services”, Kain said.
It’s evidence of strong execution on Peppermint’s multi-channel strategy, following its recent re-listing on the ASX boards with a successful $2.5m share placement.
Peppermint’s Basic insurance product covers accidental death/disablement and provides unlimited telephone access for medical advice.
The Plus product covers the same health risks as well as contents insurance in the event of damage or fire, while the Prime package includes coverage for murder/assault as well as cash payments for fire damange and death benefits due to sickness.
“Offering accessible and affordable insurance products is an extremely important part of Peppermint’s overall vision to deliver financial inclusion and social good to the Filipino people,” Kain 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.