BLAINE, Wash., Aug. 18, 2016 (GLOBE NEWSWIRE) -- Mobetize Corp. (OTCQB:MPAY) Mobetize Corp., an emerging participant in the provision of mobile financial services (MFS) technology for the multi-billion dollar business to business (B2B) segment of the financial technology (Fintech) sector is pleased to announce that revenues generated during the three month period ending June 30, 2016, were $75,618 as compared to revenues of $3,335 during the same period in 2015.
Revenue Model and Ongoing Business
Mobetize revenue is generated through licensing, consulting, and transactional processing of financial services through the Mobetize Global B2B Fintech Marketplace (the “Hub”). Mobetize is focused on selling Fintech solutions and services to global telecom operators and financial institutions (FI’s).
Telecom and financial institutions are choosing Mobetize to provide consulting (development) services and to act as a commercial partner. Mobetize expects to realize significant transactional revenues from these relationships.
We continue to work with Tata Communications Canada Ltd. (“Tata”) to develop and power its Mobile Money Enablement strategy and roadmap including marketing and customer onboarding strategies for their B2B Fintech model. We expect transactional revenues to commence from a commercial relationship in our 3rd fiscal quarter 2016.
During our first fiscal quarter of 2016, we signed an LOI and a consulting agreement with a Canadian FI to jointly develop and market a digitized lending application built on the core Mobetize Hub platform. The success of this engagement has uniquely positioned Mobetize to partner with FI’s across North America to digitize and simplify bank lending processes. The goal of Mobetize is to assist FI’s to perform auto Know Your Client and Anti Money Laundering compliance in addition to auto adjudicating the personal bank lending process.
The online lending industry is growing at a rapid pace with industry experts predicting it to become a $1 trillion industry by 2025. Online lending will enable banks to offer consumer and small business borrowers quick and affordable access to credit, transforming traditional lending processes.
During our first fiscal quarter we also came significantly closer to consummating a partnership with the second largest FI ATM Network comprised of 150+ banks. We have progressed to the point where Mobetize expects a commercial agreement to be executed in our second fiscal quarter of 2016. An agreement with this banking network would permit us to offer the Mobetize Hub financial services applications to over five million debit card holders across Canada.
Over the remainder of 2016 and into 2017, Mobetize will continue to pursue its strategy of offering Mobetize Hub services to telecom operators and financial institutions. We will also continue to focus on expanding our collection of fintech partners and on R&D innovation in order to create the latest technologies that will solve real world problems in today’s financial services landscape. During our second and third fiscal quarters we anticipate significant growth in our Fintech banking relationships, an increase in transactional volumes and developing an acquisition and joint venture revenue model.
About Mobetize Corp.
Mobetize Corp. (OTCQB:MPAY) is an emerging Fintech Company that has developed a global B2B Fintech financial services marketplace (the “Hub”). Mobetize converges telecom and banking to simplify the delivery of mobile money services to leading telecommunications companies and financial institutions. Mobetize technology helps the telecom and banking industries to increase their revenues, decrease customer service costs and increase loyalty to existing offerings. For more information, visit http://www.mobetize.com
Forward Looking Statements
This press release includes statements that are not historical in nature and may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning Mobetize's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of Mobetize and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for Mobetize's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in Mobetize's previous filings with the Securities and Exchange Commission. Mobetize disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.