CARMEL BY THE SEA, Calif., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Innovative Payment Solutions, Inc. (OTCQB: IPSI) (“IPSI” or the “Company”), a leading FinTech provider of digital payment platforms, is pleased to announce the funding by IPSI of its first capital contribution of $500,000 to IPSIPay ExpressTM (IPEX), a limited liability company joint venture between IPSI, Open Path and eFinityPay.
The contribution affords IPSI an 11% equity interest in the joint venture, a stake that is expected to increase to 33% upon the funding of the two additional tranches of $500,000 totaling $1 million, which tranches are due by September 30 and October 31, 2023, respectively.
IPSI also reiterated its previous statements that IPEX remains on track for a third quarter launch and initial revenues. 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.
IPEX is developing an account-to-account payment application called Instant-Settlement in RealTime™, which revolutionizes frictionless payments for the online gaming and entertainment verticals. This innovative solution 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.
The joint venture partners, IPSI, Open Path, and eFinityPay, are seasoned veterans in the payment industry, each contributing their expertise to the development of IPEX. Open Path facilitates world-class merchant processing transactions via its global reach and integration with hundreds of eCommerce processors and merchants. eFinityPay provides payment solutions to eCommerce merchants globally. IPSIPay, with over six years of experience in the digital payment industry and led by Wall Street veterans, adds important banking contacts as well as access to capital to the joint venture.
IPEX has developed its flexible application programming interface (API) which mitigates the risk of fraud and chargebacks, providing enhanced value to potential IPEX customers through lower costs and instant settlement. It has been reported that chargebacks alone represent a 2 to 4% annual cost to business utilizing payment processing, amounting to approximately $2.4 billion within the $81 billion global gaming market. Moreover, the IPEX API is expected to be compliant with anti-money laundering (AML) and know-your-customer (KYC) regulations, and its instant settlement feature obviates the need for banks to hold significant reserves against transactions.
While the proprietary IPEX platform is suitable for mainstream processing, IPEX's initial efforts will focus on online gaming and entertainment industries, aligning with the current market demand. IPEX is also expected to offer traditional credit card processing, allowing IPEX to cater to a broader range of merchants, provide comprehensive payment solutions tailored to specific needs, and create near term revenue generating potential for IPEX.
William Corbett, Chairman and CEO of IPSI, expressed his enthusiasm for the collaboration, stating, “To be able to own 11% of this compelling company with world-class joint venture collaborators in OpenPath and eFinityPay, in the red-hot gaming markets, presents a great opportunity for our shareholders. We look forward to providing additional updates as the year progresses."
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, with a particular focus on 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 and obtain a bank account at a major U.S. institution, enabling them to execute financial transactions through IPSI's large, worldwide merchant network. Additionally, 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 online gaming and entertainment.
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, 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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