Funding affords IPSI an initial 11% equity interest in a new payment processing joint venture, which remains on track for third quarter launch and initial revenues.
Innovative Payment Solutions, 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.
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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.
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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.”
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.
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