New Payment Processing Joint Venture Making Progress Towards Anticipated Third Quarter Launch and Initial Revenues
Joint Venture Expands into Traditional Credit Card Processing in Addition to New Real-Time Consumer-To-Merchant Payments Solution
CARMEL BY THE SEA, Calif., June 27, 2023 (GLOBE NEWSWIRE) — Innovative Payment Solutions, Inc. (OTCQB: IPSI) (“IPSI” or the “Company”), a FinTech provider of proprietary digital payment platforms that enable transfers of money by means of convenient, fast, cost effective and secure systems, today provided an update on IPSIPay Express™ (IPEX), its joint venture with payment industry veterans OpenPath and eFinityPay originally announced on May 1, 2023.
IPEX was formed to provide a new proprietary, real-time consumer-to-merchant payment solution called Instant-Settlement in RealTime™. IPEX is focused on providing payment solutions to so-called high-risk sectors such as online gaming and entertainment.
Key IPEX developments since the May 1st announcement include:
- IPSI has made an initial capital contribution of $200,000 to IPEX as part of its $1.5 million total commitment amount. In exchange for this capital contribution, IPSI received its first tranche of equity ownership in IPEX amounting to 4.4% of the IPEX. This capital infusion will accelerate product delivery and cover IPEX’s start-up costs. If the full $1.5 million of capital is contributed to IPEX by IPSI, IPSI would own one-third of the joint venture.
- The IPEX joint venture partners have agreed to expand the scope of services provided by IPEX to include traditional credit card processing. This expansion will allow IPEX to cater to a broader range of merchants, provide comprehensive payment solutions tailored to their specific needs, and create near term revenue generating potential for IPEX.
- IPEX has secured key relationships with commercial banks, which help solidify the robust financial infrastructure needed to support both the traditional credit card processing as well as IPEX’s new Instant-Settlement in RealTime payments solution.
- The development of IPEX’s proprietary Instant-Settlement in RealTime technology, which integrates application programming interfaces (known as APIs), will enable ecommerce businesses to seamlessly manage payments, providing a secure and efficient payments experience.
- The IPEX joint venture partners have begun soft marketing of the IPEX payment solutions to potential customers, including current customers of OpenPath who could benefit from IPEX’s new real time payments platform.
- As a result of these developments, it is now anticipated that IPEX could generate initial revenues during the third quarter of this year, which could pave the way for potential cash distributions to IPSI by the end of the year, assuming market acceptance of IPEX’s services and solutions and the availability of net cash for distribution to the IPEX joint venture partners.
In addition, the joint venture partners have recently executed the definitive operating agreement for IPEX. The Form 8-K filed by IPSI on June 23, 2023, provides the agreement in its entirety. Considering the accelerated development of IPEX, under the agreement the remainder of IPSI’s $1.3 million capital commitment to IPEX will now be due in stages by October 31, rather than December 31 as previously reported. This adjustment demonstrates IPSI’s commitment to the timely realization of IPEX and its dedication to driving innovation in the payment industry.
William Corbett, IPSI’s Chairman and CEO commented, “We are excited to inform our shareholders and followers about the substantial progress made since our May 1 press release about IPEX and its new, proprietary Instant-Settlement in RealTime payments solution. We believe this technology is potentially industry changing, aimed at resolving issues that merchants face, especially when processing transactions for the high-risk segment. IPEX’s technology will reduce chargebacks and eliminate friendly fraud, thereby increasing the bottom line of our merchant customers, while also improving the payment experience for consumers. Using this technology should allow IPEX to quickly gain market share in a very large online gaming and entertainment industries. Moreover, we are pleased to announce the expansion of this joint venture to capture traditional credit card processing services. We anticipate IPEX should generate revenues during the third quarter of this year, with the potential for net cash distributions from IPEX to IPSI and its partners by the end of this year. We are looking forward to working with our partners to make this business opportunity a reality for the benefit of merchants, customers, and our shareholders.”
Scott C. Dorey, OpenPath’s CEO, commented, “We have been soft marketing the Instant-Settlement in RealTime payments solution concept to customers who utilize online payment processing, and the reception so far has been positive. We look forward to leveraging OpenPath’s industry experience and reputation in payment processing as we bring the IPEX solutions to market this year and to helping IPEX capture market share.”
Franklin Levy, the CEO of eFinityPay, commented, “As the IPEX partner responsible for incorporating online payment technology and working with key third party providers in this regard, I am pleased to report that we have made substantial progress on both the technology integration and related banking partnerships that will be at the core of the IPEX offerings. We expect to launch the IPEX credit card processing solution aimed at high-risk sectors in the coming months, and the prospects for Instant-Settlement in RealTime is truly exciting. I believe IPEX and its account-to-account solutions is the future of merchant processing.”
About Innovative Payment Solutions, Inc.
Innovative Payment Solutions, Inc. (OTCQB:IPSI) is a cutting-edge provider of digital payment and other solutions for both business owners and consumers, focusing on the needs of the unbanked and underserved. Through its IPSIPay® App, IPSI facilitates instantaneous cross-border remittances by companies and individuals, using its robust technology platform to enable digital transactions that are convenient, cost effective, fast, and secure. IPSIPay® App users can acquire VISA debit cards, as well as obtain a bank account at a major U.S. institution, enabling them to execute financial transactions through IPSI’s large, worldwide merchant network. IPSI is also a joint venture partner in IPSIPay Express, a new business aiming to provide a proprietary Instant-Settlement in RealTime™ solution to markets including online gaming and entertainment.
To learn more about Innovative Payment Solutions, Inc., please visit www.ipsipay.com.
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,” or “will” or the 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) the Company’s ability to continue its commercialization efforts for the IPSIPay® App and related capabilities; (vi) the Company’s ability to increase its number of active users and generate revenue from such users on a continuing basis; (vii) the Company’s ability to operate its platform without errors; (viii) the Company’s ability to operate its technology for use in all U.S. states and foreign countries; (ix) the Company’s ability to generate revenue, positive cash flow or profitability; and (vi) the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, 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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