Peppermint Innovation Ltd (ASX: PIL) has announced a five-year strategic partnership with the Philippines’ oldest and largest regional co-operative federation, MASS-SPECC Cooperative Development Center (MASS-SPECC), in a significant move towards financial inclusion and digital transformation, aiming to empower co-operative members with accessible digital financial services and further their financial literacy and security.
Unlocking Financial Access
Peppermint Innovation is a FinTech company with a focus on commercialising the Peppermint Platform, a proprietary technology solution targeting four key business sectors: mobile payments, eCommerce, delivery and logistics, and mobile financial services.
Designed to address the critical issue of financial inclusion, particularly for the unbanked and underbanked population, the platform seeks to facilitate mobile micro-business enterprises and enhance consumer convenience, aligning perfectly with the needs of the Philippines.
A Comprehensive Financial Ecosystem
Under this agreement, Peppermint will provide MASS-SPECC’s Pinoy Coop Mobile App with comprehensive financial services by leveraging the Peppermint Platform.
This includes Peppermint’s mobile banking application and eWallet services, bringing modern financial solutions to the co-operative members. With Phase one focusing on essential financial services and Phase two expanding to include a broader range of offerings, this collaboration aims to create a holistic financial ecosystem.
A Solution for the Unbanked and Underbanked
In the Philippines, a staggering 70 per cent of the population, equivalent to approximately 77 million people, fall within the unbanked and underbanked category.
Serving these underserved communities in remote and challenging-to-reach areas are MASS-SPECC’s 343 member co-operatives, collectively representing approximately 1.6 million individual members.
Until August 2023, MASS-SPECC processed a staggering Php 14.4 billion (approximately $390 million) in cash withdrawals, bills payments, and fund transfers, underscoring the immense potential for digital financial services in the region.
Expected to launch in December 2023, the Pinoy Coop Mobile App, developed on the Peppermint Platform, will serve as a crucial bridge connecting these members to modern financial services, empowering them to actively participate in the digital economy.
Revenue Sharing and Sustainability
One of the highlights of this partnership is the revenue-sharing agreement between Peppermint and MASS-SPECC, with Peppermint set to earn approximately $0.10 for every transaction conducted through the Pinoy Coop Mobile App.
Additionally, Peppermint is set to generate around $280,000 from Bizmoto managed services, support, and maintenance fees, with this financial arrangement not only benefiting Peppermint but also contributing to the sustainability of MASS-SPECC’s operations.
Figure 1: The Bizmoto agent network provides bill payment, buy load, cash transfer services and remittance
The Significance of the Partnership
Peppermint’s Managing Director and CEO, Chris Kain, highlighted the strategic importance of this partnership.
“We welcome a strengthened strategic business relationship and one that has the potential to deliver additional services to members and revenue for stakeholders,” he said.
“Peppermint’s strategy is sharply focused on revenue-generation from two key ‘silos’ – our bizmoLoan operations, as well as licence and transaction fees earned from our EMI wallet services and mobile app platform ‘white-label’ solution for third parties.”
“The MASS-SPECC agreement represents a significant milestone and is a key component in Peppermint’s strategic, dual revenue-generating model, in terms of revenue generation from EMI Wallet services and a mobile app white label solution.”
“We have repeatedly outlined our Company’s strategic direction. We’re now delivering on it.”
In her statement, MASS-SPECC CEO Bernadette O. Toledo also expressed excitement about the partnership’s prospects, acknowledging the potential to transform the lives of the federation’s members through digital channels.
“MASS-SPECC is pleased to partner with Peppermint Innovation as we launch our program of digital transformation via Mobile channel,” she said.
“We are excited about the prospects of a highly productive partnership in the days ahead.”
PIL’s Australian Stock Exchange-listed share has risen 25 per cent today and is currently trading at $0.010 (1:30pm UTC+ 8 hours).