COOP app goes live but the revenue figures will have to scale massively to make a significant change in cash flow. Although having 181K members currently only 18K active app users. Currently in first 4 days 2.5K users made 1.1K transactions of which PIL gets 10c per transaction so $110. So if 50% of members sign up, 90K users @ ~80K transactions / week = $8K / week revenue for PIL or $400K/ year. Cash burn for last year was $3M. However if it proves popular the potential coop membership of 3.4M @ 50% uptake on the same number of transactions would give an annual revenue of more like $7.5M so plenty of potential but the roll out has been slow. The mobile phone top up integration could help.

Key milestone with MASS-SPECC, integrating the mobile platform of one of their leading Cooperatives in the Philippines with the Pinoy Coop Mobile (PCM)

Tagum Mobile ‘goes live’ with both Android and iOS launch of the PCM wallet. Tagum Coop is a significant cooperative in Mindanao and yet is just one of MASS-SPECC’s 360 cooperatives representing some 3.4 million members who are the target users of the PCM app.

bizmoto-powered PCM digital wallet will enable Tagum Mobile users to perform real-time fund transfers from their ATM accounts to the PCM wallet via Instapay

Tagum has 181,196 members, more than 100,000 mobile app downloads, 40,000 ATM card holders and over 18,000 active mobile app users

Peppermint initially targeting Tagum active users and ATM card holders

Peppermint earns approximately 10c per transaction

Tagum has requested additional integration of Peppermint e-load services to offer mobile phone airtime top-ups directly through their app to all users

“At this early stage we are very encouraged by the strong user adoption of the PCM wallet embedded in the Tagum mobile app. Within only 4 days since iOS and 18 days since Android launch, we have already 2,568 registered users, who have conducted 460 fund transfers via InstaPay valued at circa AUD$37,000, and 680 ATM to Wallet transactions valued at circa AUD$40,000.

Two certifications that allow PIL to clip the ticket on electronic transactions within the Bizmoto app, previously provided by athird party. SP up 33% at time of writing albeit off a very low base.

Peppermint Managing Director and CEO Chis Kain said: "The BSP's certification of our operations is an important milestone in Peppermint's strategy to fully leverage our Electronic Money Issuer ("EMI") licence and use it to drive revenue growth via increased transactions across the bizmoto platform."

By way of some comparison, a Philippines mobile-App based platform with an EMI licence called Coins.ph was sold in early 2021 for US200 million, after having been purchased by Gojek for around US$95 million in 2019."

"Peppermint has a commercially proven, deployed and growing mobile-App based ecosystem in the Philippines which is underpinned by a Finance Company Licence and an EMI licence. We are currently valued at circa AUD$13M."

Peppermint Bizmoto Inc. ("PBI") issued with Certificate of Registration ("COR") as an Operator of Payment System ("OPS") by the Bangko Sentral ng Pilipinas ("BSP")

• Certification allows PBI to be listed among the BSP's 'approved and supervised' Operator Payment Systems throughout the Philippines, providing a safe, efficient and reliable payment and settlement system for its Bizmoto users

• PBI issued with Certificate of Eligibility ("COE") by the BSP for direct membership with the Philippines Payments Management Inc. ("PPMI"),

• Certification allows PBI to join PPMI in the PESONet and InstaPay Automated Clearing Houses ("ACH") as a Sending and Receiving Participant under the National Retail Payment System ("NRPS") of the Philippines

PERTH, AUSTRALIA, 27 SEPTEMBER 2023: Peppermint Innovation Ltd (ASX: PIL) ("Peppermint" or "the Company) is pleased to announce its 100 per cent owned subsidiary, Peppermint Bizmoto Inc. ("PBI") has been issued two vitally important bank certifications by the Bangko Sentral ng Pilipinas ("BSP").

The BSP, which is commonly referred to as the Central Bank of the Philippines, has issued PBI with a Certificate of Registration ("COR") as Operator of Payment System ("OPS") and a Certificate of Eligibility ("COE") for membership in the Philippines Payments Management Inc. ("PPMI") allowing direct connection to the PESONet and InstaPay Automated Clearing Houses ("ACH") as a Sending and Receiving Participant under the National Retail Payment System ("NRPS") of the Philippines.

The critical certification provides for PBI to be listed among the BSP's 'approved and supervised' Operator Payment Systems throughout the Philippines, providing a safe, efficient and reliable payment and settlement system for its bizmoto users.

It also allows PBI to operate its payments platform outside of its closed loop of bizmoto users and ensures that its role as a payment service provider to small banks, organisations, transportation services and any other community group delivers quality payment services via bizmoto.

Despite PIL being granted the EMI licence this quarter the revenue is still a way off. Revenue does not even cover product manufacturing and operating costs. $5M cash at hand. Agent growth but only 4K downloads of the app and agents/ riders no growth. The next half will be important in proving/disproving the platform business model. Large market but needs to gain traction. Interesting to see if the financial education app can help achieve growing customer numbers. White label mobile banking solution could help revenue.

"With these final requirements all but completed this week, we expect to launch our EMI pilot program this quarter, provided that our chosen communities and program partners are able to meet an agreed timeline.

"And finally, the Company is also in discussions with a global digital payments provider with respect to a strategic partnership and I look forward to providing further updates to our shareholders and the market in relation to these negotiations shortly.

The EMI licence will significantly extend Peppermint Bizmoto’s opportunity to reach microentrepreneurs and provide digital payments for their businesses. They can also apply for bizmoPay loans, as well as purchasing bizmoProtect micro-insurance policies and future bizmoto platform products and services.

A targeted marketing campaign saw the number of registered bizmoto agents grow in the June quarter to a total of 63,337 agents while the total number of bizmoto App downloads continued to rise, up 11% to a total of 4048 downloads for the June Quarter. The number of registered merchants remained at 748 while the number of registered BizmoGo riders also remained steady at 672.

To strengthen the bizmoto offering, Peppermint is progressing the development of a financial education App - to be called bizKarte - that aims to help improve the financial understanding and wellbeing of both agents and the wider Filipino community. The standalone App will deliver learning content across several areas including (i) Savings, (ii) Investments, (iii) Household bill management; (iv) Budgeting; and (v) Small business management and is aimed at attracting new consumer-focussed clients to the bizmoto ecosystem.

The Company is now at varying stages of commercial negotiations with at least five other banks around the implementation of Peppermint's MBS services. It is currently assisting these banks to assess their technical requirements to join the BancNet server in order to successfully onboard Peppermint's MBS services.

Held in SM

Yesterday, Peppermint Innovation Limited (ASX:PIL) requested a Trading Halt pending the release of an announcement “regarding the issue of an important licence for the Company in the Philippines.” This might relate to their critical application for an Electronic Money Institutions (EMI) license.

From the company’s website:

“Peppermint Innovation is a FinTech company focused on the commercialisation of the Peppermint Platform, a proprietary technology platform targeting four key business sectors – mobile payments, eCommerce, delivery and logistics, and mobile financial services.

The Peppermint Platform is an innovative financial technology solution aimed at delivering financial inclusion to the unbanked and underbanked, facilitating mobile micro business enterprise and providing consumer convenience.

Commercially deployed and proven in the Philippines, Peppermint is powering the company’s own Bizmoto non-bank mobile micro-enterprise platform and delivering white label mobile banking app solutions to the banking sector.”

In summary, this small Perth-based fintech enterprise has plans to take advantage of non-bank e-commerce and small loans opportunities, initially in the Phillipines.

The road has been extremely rocky for this group over the last few years, with an extended period of suspension from the ASX in the setting or reporting schedule defaults, but a somewhat smoother tracking over the last 12 months, with more recent quarterlies suggesting good growth in their network of smart-phone app-based agents.

The critical issue for PIL has been the success or otherwise of their application for an Electronic Money Institutions (EMI) license via Bangko Sentral ng Pilipinas ("BSP").

This announcement may or may not herald a very positive move for the company, and might provide a significant speculative opportunity.

Disclosure: I have a small RL holding in PIL.

PIL integrates with major payment platform (live Q2) to provide transfer route into the the Bizmoto system for the non bank clients that the platform targets.

• Peppermint signs key bill payment agreement with PayMaya Philippines, Inc.

• bizmoto classified as a 'biller' on the PayMaya technology platform

• Agreement makes it easy for bizmoto agents to 'top-up' or 'cash-in' to their bizmoto mobile wallets

• PayMaya has 26 million registered App users and a network of 55,000 'Smart Padala' partner agents across the Philippines.

Peppermint, this is yet another step in trying to integrate and become completely interoperable with the payments landscape in the Philippines and, most importantly, make the process for our bizmoto agents to cash-in to their bizmoto wallet as frictionless and seamless as possible.

"Our aim is to have all the necessary technical and system integration complete to enable a first phase 'go-live' date in Q2 this year.

SP back at lows well below the CR and no good news in the quarterly. Lockdowns have affected roll out in the Philippines. Revenue down.

Only highlight is progress towards EMI.

All required documentation for Stage 3 has been submitted and on January 24 the Company delivered an in-depth system demonstration to the Bangko Sentral Ng Pilipinas (BSP) who are assessing Peppermint's EMI licence application.

PIL has moved off its lows quite significantly it will be interesting to see if this is a catalyst for wider interest.

The Company has chosen to extend the indicative settlement date by seven days to allow it time to fully assess a potential new, strategic investment partner.

PIL placement and progress to Electronic Money Issuer (EMI) License. Continued progress to revenue and growth

• $4 million committed at 2 cents per share in placement

• Funds will progress Electronic Money Issuer (EMI) Licence application and commercial roll-out of bizmoPay loan service

• Notice of Eligibility to proceed with Stage 3 of Electronic Money Issuer (EMI) License application received from Bangko Sentral Ng Pilipinas (BSP)

• EMI licence will allow any Filipino to use the bizmoto platform to receive digital money and access digital services

• Company to conduct a bonus option issue to existing shareholders

• Phase 1 commercial roll-out of bizmoPay underway

Peppermint launches bizmoPay commercial roll-out

Up to 1,000 micro-enterprise loans expected to be issued across the loan portfolio during next three-month period

This will be the test of whether the company can be successful. If they can hit this target and get the Electronic Money Issuer (EMI) licence then I would hope to see a significant rerate.