Funding affords IPSI an aggregate 22% equity interest in new payment processing Joint Venture.
IPSIPay Express remains on track for commencing revenue generating operations in the near future.
CARMEL BY THE SEA, Calif., Sept. 20, 2023 (GLOBE NEWSWIRE) — Innovative Payment Solutions, Inc. (OTCQB: IPSID) (“IPSI” or the “Company”), a FinTech provider of digital payment platforms, today announced the funding by IPSI of its second of three $500,000 capital contribution to IPSIPay Express, LLC (IPEX), a Joint Venture poised to redefine the landscape of digital payments in the rapidly growing sports betting, online gaming and entertainment sectors.
The funding represents the second $500,000 tranche of IPSI’s $1.5 million commitment to IPEX and raises IPSI’s equity stake in IPEX from 11% to 22%. A third and final tranche of $500,000 is due by the end of October which, when funded, would raise IPSI’s equity interest in IPEX to 33%.
IPSI also announced that IPEX continues to make significant progress towards commencing revenue generating operations. IPEX plans to commence revenue generation with traditional credit card processing services and will launch its proprietary Instant-Settlement in RealTimeTM platform, an account-to-account payment application aimed at revolutionizing frictionless payments for the online gaming and entertainment verticals. Instant-Settlement in RealTime positions IPEX as a potential leading payment processor for these and similar industries, promising seamless, secure, and instantaneous account-to-account transfer payments from customers to merchants.
Based on its market assessment and initial outreach to potential customers, IPSI believes that IPEX could potentially generate millions of dollars in revenue with high margins, creating the potential for free cashflow distributions to IPSI and the other joint venture partners by as early as the end of this year.
The IPEX joint venture brings together IPSI, OpenPath, and eFinityPay, entities with substantial experience and expertise in payment processing in sports betting, online gaming, and entertainment verticals. OpenPath specializes in providing payment solutions to companies processing large volumes of online payments, including major players like Shopify and BigCommerce. eFinityPay, under the guidance of counsel to the former owner of the Las Vegas Sands, delivers processing solutions to ecommerce merchants in the online casino, sports betting, and entertainment industries. The global client base of the IPEX partners is currently being integrated into the IPEX joint venture. IPSI plays a vital role to the JV Partnership by contributing the necessary working capital and facilitating essential banking partnerships.
William D. Corbett, Chairman and Chief Executive Officer of IPSI, stated, “IPSI and our valued IPEX partners are making excellent progress towards our commercial launch plans for IPEX. IPEX’s Instant-Settlement in RealTime platform, which harnesses blockchain technology through a single application program interface, is being designed to enable instantaneous account-to-account (A2A) settlement of processed transactions, akin to the functionality of Zelle’s instant payments transfer system. A2A payments have gained substantial traction in Europe, where they have successfully replaced traditional payment methods. In Italy, for example, My Bank processes well over 15 billion Euros annually. It is projected that by 2030, global A2A payments could account for 15% of all transactions, amounting to a market value of 2 trillion Euros. A2A’s increased certainty of payment, powered by the irrevocability of the transactions, will allow IPEX’s clients to expedite customer payments and reduce fraud.”
“Moreover, A2A processing is significantly more cost-effective than all available payment solutions, it addresses a pressing concern in the global gaming and entertainment sectors: chargebacks,” continued Mr. Corbett. “Chargebacks occur when customers dispute a transaction or claim a refund. With Instant-Settlement in RealTime, settlement between the merchant and the bank occurs within seconds, allowing instant access to funds for the merchant. Fraudulent claims in the $449 billion global gaming market, including associated fees and expenses, amount to multiple billions of dollars. Another significant advantage to our new platform is mitigating the currently large requirement for merchants to deposit money with the banks as insurance for fraud and chargebacks. Instant-Settlement in RealTime will be able to reduce reserves by as much as 90% for the merchants, saving them money and giving them the ability to deploy these resources to other parts of their business. Equally significant, A2A processing is applicable to mainstream processing markets, vastly expanding the revenue potential of the IPEX platform. This positions IPEX to serve a much broader digital processing base, exponentially increasing revenue potential and establishing us as a key player in this colossal market for the long term. In short, the IPEX solution will represent a paradigm shift in the online gaming and entertainment as well as other verticals.”
Mr. Corbett closed his remarks by stating, “The planned launch of IPEX stands to be a transformational event for IPSI, promising immediate impact on our revenue stream in both the near and long term. Our partnership with IPEX signifies a pivotal next step in capitalizing on the fast-growing global digital payments industry, specifically the gaming sector which is currently exhibiting unprecedented growth worldwide. We look forward to providing additional updates soon.”
About Innovative Payment Solutions, Inc.:
Innovative Payment Solutions, Inc. (OTCQB: IPSID) is a cutting-edge FinTech provider of digital and other payment solutions. IPSI is a joint venture partner in IPSIPay Express, a new business aiming to provide a proprietary Instant-Settlement in RealTime™ solution to markets including the sports betting, online gaming, and entertainment sectors.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 made by Company management and the Company’s commercial collaborators. All statements other than statements of historical fact contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate, “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “seek” or “will” or the negative of these terms or other comparable terminology. These forward-looking statements are based on expectations and assumptions as of the date of the press release and are subject to significant risks and uncertainties, many of which are difficult to predict that could cause actual results (including the anticipated benefits to the Company (including potential revenue generation) of its participation in the IPSIPay Express joint venture as described herein) to differ materially and adversely from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others: (i) whether the IPSIPay Express joint venture partners can develop and commercially launch IPSIPay Express on the timeframes anticipated, if at all; (ii) challenges with the gaming, entertainment and other markets in IPSIPay Express expects to operate; (iii) merchant and customer acceptance of IPSIPay Express as an alternative payment method, (iv) the ability of IPSIPay Express to generate revenue and distribute cash to the Company; (v) IPEX’s ability to operate its platform without errors and in all U.S. states and foreign countries; and (vi) the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and the Company’s subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release. The Company undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
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