Peppermint Innovation is tapping into Australia’s growing immigrant population who are transferring billions of dollars each year ‘back home’ to their countries of origin. Peppermint has established a 100 per cent owned subsidiary that will earn Australian revenue from fees charged for transferring monies around the world and from foreign exchange margins received at the time of transferring those funds.
ASX-listed fintech player Peppermint Innovation is tapping into Australia’s large and growing immigrant population who are transferring billions of dollars each year ‘back home’ to their country of origin.
Peppermint has established a 100 per cent owned subsidiary that will earn Australian revenue from fees charged for transferring monies around the world and from foreign exchange margins received at the time of transferring those funds.
Operating under the brand name, BIZMOTO, Peppermint will leverage off its well established domestic payment capabilities in the Philippines to provide expat Filipinos living in Australia with the opportunity to easily transfer monies to family members living in the Philippines.
Peppermint Chief Executive Officer Chris Kain said the Australian market for outbound remittances in 2015 was approximately $10 billion, with more than $7 billion specifically transferred to China, Vietnam, Indonesia, Malaysia and the Philippines.
Mr Kain said, “Australia also has other large expat populations with high international money transfers from countries such as India, Sri Lanka, Pakistan, Lebanon, Pacific nations and Somalia,”
“We believe the Australian outward bound international money transfer market represents a great opportunity for Peppermint to leverage our established Philippines commercial operations and diversify our revenue streams moving forward.”
Mr Kain said the international remittance landscape had changed dramatically in the past decade, largely due to tougher global anti-money laundering and counter terrorism financing regulations and in Australia, the emergence of the internet and mobile telephones as the preferred transaction channels for all parties to use.
Consequently, increased regulation has led to higher participation costs and many traditional businesses have simply struggled to adapt.
Peppermint has rolled out cutting edge infrastructure that will service both electronic and traditional channels.
Mr Kain said, “This ‘best of breed’ system positions us to grow our remittance business from Australia, both organically and through the acquisition of traditional business who have solid customer bases but who have not kept abreast of industry changes,”
“And while we were interested in prospective partners’ block chain and crypto-currency capabilities and plans, we decided to focus on technologies that are leading edge and commercially viable in our target markets and with our applications.”
In other news for Peppermint, the company revealed it had received $300,000 of a $1million placement from strategic fintech investor, Smidge Digital Trust. The remaining $700,000 placement – which was made at a premium of two cents per share will be finalised by the 18th of January 2018.
Peppermint has the option of placing another $1million with Smidge at the higher price of 2.3 cents or a 25 per cent premium to the five day volume weighted average price, whichever is higher, before the 31st of March 2018.