Fintech
NetCents Technology Issues a Letter to the Shareholders
Vancouver, British Columbia–(Newsfile Corp. – April 20, 2020) – NetCents Technology Inc. (CSE: NC) (FSE: 26N) (OTCQB: NTTCF) (“NetCents” or the “Company“), a disruptive cryptocurrency payments technologies Company, is pleased to issue a letter to the shareholders from the CEO, Clayton Moore.
Dear Fellow Shareholders,
To find a silver lining in these horrible circumstances, I have chosen to take some of this “stay at home” time to Pause, Reflect, and Plan.
It is in these times of economic uncertainty that companies can gain ground before becoming the economic powerhouses of tomorrow. There is precedent for tech companies to rise and thrive from the wreckage of a crash. What would ultimately become General Electric started amid the stock crash of the 1870s, Hewlett-Packard during the great depression, and the 2008 recession teed up tech’s long boom, giving birth to Square, Stripe, Uber, Airbnb, Slack, and Pinterest.
2008 may have been one of the most difficult financial times in recent memory for the American and global economies. However, the years following the financial crisis were amongst the best for start-up investments. The companies that were founded and grew when the economy was struggling, together make up the most lucrative start-ups since the dot-com boom days – today’s unicorns.
And this is where we find ourselves today, on the precipice of another great recession/depression. But from this economic uncertainty, we will witness the development of tomorrow’s Apples and Amazons. But this time, it won’t just be tech start-ups that reshape the future, it will be companies that fundamentally shift the global financial infrastructure as it is the fundamental flaws within this infrastructure that exacerbate recessions. Today is no exception.
“Too big to fail banks” that rely on taxpayer bailouts to survive, have time and time again, made the same mistakes. The great depression was caused by the Federal Reserve System[1] , and much of the economic damage was caused directly by bank runs fueled by a fundamental lack of trust within the banking system. The global financial crisis that began in 2007 centered around market-liquidity failures brought on by the banking industry. The cost of cleaning up a systematic banking crisis can be huge, with fiscal costs averaging 13% of GDP and economic output losses averaging 20% of GDP for crises from 1970 to 2007[2].
This time, however, we do not need to be destined to repeat the mistakes of the past. We now have new tools available to us to shape a different future, one that puts the control back into the hands of the individual-a future where people control access to their funds that eliminates the bank liquidity issues of the past.
The answer is cryptocurrency and blockchain.
Cryptocurrency and blockchain have already begun reshaping and altering future financial infrastructure. In 2016, at a time of political uncertainty, we saw cryptocurrency jump into public consciousness and dramatically break onto the public stage. During this first foray into the world economic stage, cryptocurrency filled the role of asset and began laying the framework towards becoming a currency.
Over the past few years, the initial hype around cryptocurrency died off, and the market stabilized. Facebook, with its launch of Libra, attempted to create a cryptocurrency for the masses, and we’ve witnessed the first foray of banks into the sector. During this time, companies, like NetCents, have been building the financial platforms that will power the future, leveraging blockchain and cryptocurrency.
Today, we are witnessing a paradigm shift in cryptocurrency, a shift from an asset to actual currency, the building blocks for the financial infrastructure of tomorrow. Unfortunately, it has taken another time of crisis. However, this time, the crisis affects a far broader group of people, and the current uncertainty of the traditional financial infrastructure is of growing concern.
This is our reality today-the uncertainty around the future of the global economy and the existing financial infrastructure. In times like these, the last thing that people need to be worried about is whether or not their finances are secure and if they will continue to have access to them. With this, we see a massive uptick in interest in leveraging cryptocurrency as a transactional currency-a groundswell of momentum.
As unfortunate and challenging as today is, this is where cryptocurrency shines. Unlike traditional fiat currencies, cryptocurrency never closes or takes banking holidays. Whether its value has increased or decreased against the dollar, it never stops moving and, more importantly, being accessible. This confidence and security are priceless at times like these.
The understanding of, and value, of cryptocurrency, is finally being recognized for its intended purpose and not a tool for speculation, which is what it has been up until this moment.
Regardless of whether today ‘s financial infrastructure wavers in the short term, these structural issues will not disappear, and this new momentum will continue as we move forward. Thankfully, the alternative exists, and companies, like NetCents, have been working to solve these problems.
To reflect on NetCents and the achievements of the past year:
NetCents has transitioned from a company building its technology to a company selling its technology. Our sales staff took on a growth initiative early last year that has been very successful. Since launching these efforts in 2019, NetCents consistently achieved record double-digit month over month processing volume growth. We are proud of our sales initiative and expect this growth to continue. An essential part of our sales strategy has been to focus on our relationships developed from years of experience in the traditional payment space. Our efforts have strategically positioned NetCents for mass adoption as more and more merchants become interested in accepting cryptocurrency for payments. We have positioned ourselves to be the default solution for these market participants. This unique approach provides what we think is a clear advantage over other solutions; we have earned the credibility to be the incumbent in the payment space for cryptocurrency.
So in effect, if you question whether we can prosper in a challenging market environment and become a “unicorn” – the answer is: We already have. We have thrived in what we internally call the “Cryptocurrency Winter” where (beginning in 2018) Bitcoin fell from a high of $20,000 to a few thousand dollars. We used that time (when any cryptocurrency technology was out of favour) to develop a leading position in the cryptocurrency transaction market and now have a scenario where we can take advantage of what we have created.
NetCents is building a complete financial services company providing services for individuals and companies
– not just for crypto speculation –
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We are providing exchange services combined with the payment platform allowing digital touchless consumer payments in retail environments and e-commerce payment technology.
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We are providing credit card products.
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We are providing merchant processing to retailers.
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We are providing a commercial banking infrastructure for global banks that wish to service their clientele that desire to deposit and trade cryptocurrency.
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We are providing invoicing and payment technology to SaaS and PaaS companies (Software-as-a-Service, Platform-as-a-Service).
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We have recently begun working on our first “fixed-income” product with Link Global – creating investment opportunities that pay periodic income payments far exceeding “bank” savings products.
*Each of these verticals represents hundreds of billions in transactions (and a couple are in the trillions)
Digital Currencies going Mainstream
Now, I am going to throw some more lingo at you – Central Bank Digital Currencies – (CBDC) the reason I mention it is because in a few versions of the US stimulus bills included legislation approving the creation of a digital dollar, and the establishment of digital dollar wallets. This legislation was introduced to create an additional way to pay stimulus money to the masses that is faster and cheaper than mailing checks to tens of millions of recipients. Unfortunately, the final version of the legislation didn’t include this piece. However, I believe that we will see it again in stimulus legislation that will be introduced in the coming weeks or months. We have prepared our platform to offer the USD digital wallet to US chartered and global banks to meet the requirements that Congress has established for this USD digital reserve currency. We think it is the ultimate endorsement of cryptocurrency that the US government, reserve currency for the world, is now embracing cryptocurrency.
NetCents stands to benefit more from cryptocurrency becoming mainstream – than a bull market in Bitcoin, that is for sure.
I hereby offer my services to the United States as a creator of a Central Bank Digital Currency Task Force to assist the US Government in implementing the processes and technologies to meet their needs.
Plan
As I have already relayed, we just launched many of the business lines explained above. We will be staffing these businesses internally – but will tap into our growing advisory board globally to open the doors of banks and potential partners around the world. I believe that our advisory board will be instrumental in the tidal change that is about to begin, whereby all of the global commercial banks will start to receive and manage cryptocurrency for their clients. We will be offering our white label service for those products to allow these banks to seamlessly provide these services without having to develop and manage them internally.
Conclusion
To connect all of these dots – we have created a strong position in our main business line, and are now embarking on multiple additional revenue streams – that all meet similar criteria:
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High Margin
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Scalable – with limited headcount required to generate significant market share
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Meeting unmet demand for financial products that we are uniquely qualified to provide
Net Cents has been the #4 performing stock in the Canadian Stock Exchange year to date – why? Because we have been disclosing our roadmap, and people realize that we are perfectly positioned to execute based on the hard work we have been doing for 36 months.
We are building out NetCents to have attractive revenue streams based on the adoption of digital currencies worldwide – we make attractive margins on every transaction and aren’t dependent on any specific underlying cryptocurrency to make money – we will make more money as more and more wallets are created. More business clients elect to use our systems. We are confident that we have positioned the Company for success, and that success just might be coming a little more quickly because of many converging world events.
Success occurs when opportunity meets preparation.
Thanks for your time.
Clayton Moore, Founder & CEO
About NetCents
NetCents Technology Inc, the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a Money Services Business (MSB) with FINTRAC.
For more information, please visit the corporate website at www.net-cents.com or contact Sonja Bakgaard, Investor Relations: [email protected].
On Behalf of the Board of Directors
NetCents Technology Inc.
“Clayton Moore”
Clayton Moore, CEO, Founder and Director
NetCents Technology Inc.
1000 – 1021 West Hastings Street
Vancouver, BC, V6E 0C3
Cautionary Note Regarding Forward-Looking Information
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates, and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
[1] https://www.federalreservehistory.org/essays/great_depression
[2] https://journals.sagepub.com/doi/10.1177/0027950108099838
Fintech is on an accelerated trajectory of investment, collaboration, and innovation. This pulse tracks the most significant developments in the sector, from high-profile investments to global platform expansions. Each update in this briefing serves as a key indicator of where the industry is headed.
1. European Fintechs Face Regulatory Pressures Amid New Investment Surge
The European fintech sector finds itself at a crossroads with increasing scrutiny and rising costs due to stringent regulations. While investments continue to flow into the continent’s financial technology companies, challenges in meeting new compliance requirements, especially around data privacy and cybersecurity, create a complex landscape for scaling. This tension between opportunity and operational limitations might affect European fintechs’ growth strategies.
Source: Financial Times
2. Shopify, Slack Founders Join Peter Thiel in Fintech Investment Push
Tobi Lütke of Shopify and Stewart Butterfield of Slack, along with investor Peter Thiel, have co-invested in a new fintech initiative that aims to bolster small business access to capital. By merging technology with a streamlined funding model, this new initiative targets underserved SMBs, highlighting a broader trend of high-profile tech leaders pivoting to fintech investment. The participation of Lütke and Butterfield signals increased cross-sector collaboration in fintech, bringing expertise from e-commerce and communication technology into the financial arena.
Source: Yahoo Finance
3. Lean Technologies Raises $67.5 Million to Drive Fintech Innovation in the Middle East
Riyadh-based fintech platform Lean Technologies recently secured a $67.5 million Series B investment round, aiming to expand its operations across the Middle East. This funding reflects growing investor interest in emerging markets and the potential of Middle Eastern fintech to bridge regional gaps in financial services access. As Lean Technologies broadens its service offerings, the funding will support further technological integration and scalability across financial ecosystems in the region.
Source: Fintech Global
4. Apollo Global Management Invests in Fintech for Private Offerings Support
Apollo Global Management has taken steps to enhance its services for private offerings by investing in specialized fintech solutions. This development signifies a growing trend among private equity firms to adopt fintech as a core component in their service expansion, particularly for personalized client services. Apollo’s strategy of integrating fintech solutions into private offerings marks a strategic shift toward digitalization within traditional financial sectors.
Source: Bloomberg
5. Juniper Research Names 2025’s Future Leaders in Fintech
Juniper Research has revealed its picks for the top future leaders in fintech for 2025. This list emphasizes innovation in fields such as AI, open banking, and decentralized finance, highlighting startups that exhibit potential for reshaping industry standards. As these up-and-coming firms push the boundaries of traditional finance, they exemplify the rising tide of next-generation financial technology poised to become industry mainstays.
Source: Globe Newswire
Conclusion
The convergence of seasoned tech giants with fintech, new funding rounds for region-specific platforms, and the rise of future industry leaders underscore the momentum of the fintech sector. Each of these stories reflects a broader narrative: fintech is not only diversifying in services but also rapidly integrating into traditional finance and tech, paving the way for a transformative era.
The post Fintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation appeared first on HIPTHER Alerts.
In this edition of Fintech Pulse, we delve into groundbreaking announcements from the 2024 Hong Kong Fintech Week, spotlight strategic collaborations fostering financial accessibility, and examine significant profit growth in global fintech companies. Here’s our comprehensive breakdown of the latest happenings in fintech.
1. Bairong’s Full-Scenario AI Products Showcase at Hong Kong Fintech Week
Source: PRNewswire
At the 2024 Hong Kong Fintech Week, Bairong showcased its range of AI-driven solutions designed to support the digital transformation of financial institutions. Their new “full-scenario” suite aims to enhance data analysis, financial risk management, and credit scoring. The offering underscores Bairong’s strategic vision to advance financial decision-making with AI technology that serves a variety of sectors, including banking, insurance, and asset management.
This development aligns with broader industry trends emphasizing the power of AI to bridge operational gaps in traditional finance. Bairong’s solutions promise to optimize financial workflows, identifying high-risk factors in real-time. The commitment to developing comprehensive, adaptable AI tools demonstrates Bairong’s ambition to stay at the forefront of AI-powered fintech innovations.
2. SBI and APIX Establish Innovation Hub to Propel Fintech Partnerships
Source: The Paypers
SBI Holdings, Japan’s major financial services group, recently announced the launch of an Innovation Hub in partnership with APIX to advance fintech collaboration and innovation. The hub will serve as a catalyst for startups and financial technology firms to collaborate, leveraging APIX’s open innovation platform for API exchange.
Through this hub, SBI and APIX aim to address critical technological needs in the fintech sector. Startups and established firms can collaborate on new technologies and bring forward interoperable systems for the industry. This initiative marks a new phase in fintech alliances, where regulatory support and open innovation can accelerate fintech growth on a global scale.
3. Wise’s Record Profits Point to Growing Market Dominance
Source: MSN
British fintech giant Wise reported a 55% surge in profits, driven by an expanding customer base and increased market share. The company’s cross-border payment solutions are seeing widespread adoption, as it provides individuals and businesses with affordable currency exchange options, bypassing high fees associated with traditional banks.
Wise’s success underscores the current demand for transparent, low-cost international payments. As the firm continues to focus on product expansion and market penetration, its financial trajectory showcases how fintech firms can challenge the status quo in cross-border transactions, maintaining profitability while serving a rapidly growing user base.
4. Parker Secures $20 Million Series B Funding for Fintech Data Suite
Source: Forbes
Fintech startup Parker raised $20 million in a Series B funding round, with the goal of expanding its suite of financial data tools. Parker’s product range enables small and medium enterprises (SMEs) to gather and analyze data, facilitating more informed financial decisions. This funding reflects investor confidence in the need for specialized financial data tools tailored to SMEs, a sector often underserved in financial innovation.
By addressing the needs of smaller businesses, Parker is positioning itself as a key player in the niche market of financial data, which has typically been dominated by larger corporate-focused platforms. This funding round highlights the growing trend of venture capital backing for niche fintech solutions aimed at smaller, agile businesses.
5. The Payments Group and HubPeople’s Cash Payments Initiative for Online Daters
Source: PRNewswire
The Payments Group, a digital payments solution provider, announced a collaboration with HubPeople, an online dating platform, to integrate cash payment solutions for over 100 million users globally. This partnership aims to reach users who may not have access to traditional banking or prefer alternative payment methods.
The initiative points to the broader trend of payments inclusivity in fintech, whereby payment firms are making financial transactions more accessible for underserved communities. By integrating cash payment solutions, The Payments Group and HubPeople highlight the importance of flexibility in payment options, acknowledging the diverse financial preferences of users worldwide.
Industry Implications and Observations
These stories collectively reveal several key trends and insights about the evolving fintech landscape. The focus on AI, digital collaboration hubs, profitability through transparency, specialized data tools, and inclusive payment solutions are reshaping financial services. Fintech’s current trajectory indicates a robust push towards not only digital transformation but also inclusivity and global accessibility.
As financial technology continues to innovate, these advancements illustrate the increasing overlap between technology and finance, as well as the potential for fintech to foster inclusive growth. With companies like Bairong and Wise setting benchmarks for AI and cross-border payments, respectively, and emerging startups like Parker developing new, data-centric tools, fintech’s future promises a dynamic shift towards improved service and enhanced user engagement.
The post Fintech Pulse: Industry Innovations and Partnerships Drive Global Fintech Forward appeared first on HIPTHER Alerts.
In today’s dynamic fintech landscape, developments range from notable appointments to industry conferences, global ranking achievements, and the ongoing struggle between digital innovation and traditional cash reliance. This op-ed-style daily briefing dives into key updates and their potential impacts on the fintech industry, touching on politics, corporate shifts, and emerging trends.
1. Trump’s Potential Impact on Fintech: Policy Shifts and Market Reactions
As Donald Trump continues to be a central figure in U.S. politics, his stance on financial regulations and fintech could significantly influence the sector’s future. Historically, Trump has advocated for deregulation, which benefited banks and other financial services firms. His policies were known to relax certain compliance requirements, which made it easier for fintech companies to expand.
Under Trump’s administration, fintech firms might anticipate reduced regulatory constraints, particularly for newer sectors such as crypto and online lending. This relaxed stance could lower compliance costs for startups, allowing more resources to flow into technology and product innovation. However, a deregulated environment also increases the risk of market manipulation and consumer harm, raising concerns among advocates for tighter oversight.
The question remains whether a Trump-influenced regulatory environment would favor long-term fintech innovation or lead to an environment that could increase risks for both investors and consumers. As debates continue, fintech companies may need to be agile in adjusting to potential policy changes.
Source: Forbes
2. Hong Kong’s Love for Cash: Fintech Growth Stymied by Cultural Preferences
Hong Kong’s journey toward a cashless society faces a unique cultural hurdle—its residents’ affinity for cash, particularly among taxi drivers. Despite the proliferation of digital wallets and payment platforms in Asia, cash remains king in this metropolis. The attachment to cash among certain groups, especially cab drivers, poses a significant challenge for fintech companies aiming to promote mobile and digital payments in Hong Kong.
This resistance to cashless options highlights the complexities of fintech adoption, where technology alone cannot drive transformation without aligning with user behavior. For Hong Kong, overcoming this challenge may require fintech firms to develop hybrid solutions that incorporate cash with digital functionality or offer incentives for digital adoption. Until then, Hong Kong’s fintech ambitions will remain somewhat constrained by the cultural fondness for cash.
This preference for cash also has implications for Hong Kong’s broader economy. If the city cannot shift toward digital transactions, it may fall behind other financial hubs in terms of fintech innovation and integration.
Source: Bloomberg
3. Dave Inc. Joins the KBW Fintech Conference: Setting the Stage for New Partnerships
Next week, Dave Inc. is set to participate in KBW’s annual Fintech Conference, a major industry event in New York City. Scheduled for November 14, the conference will bring together industry leaders, investors, and innovators. Dave Inc.’s involvement underscores its ongoing commitment to establishing new partnerships and tapping into emerging fintech trends.
For Dave, a prominent U.S.-based neobank, participating in high-profile conferences like this not only enhances visibility but also presents networking opportunities with potential investors and partners. The company’s growth strategy focuses on making financial services more accessible and affordable for underserved communities. With industry leaders present, the conference may foster collaborative efforts, especially in areas such as lending, personal finance, and digital banking.
The KBW Fintech Conference could provide Dave Inc. with critical insights and alliances to further its mission, potentially accelerating product innovation and geographical expansion.
Source: GlobeNewswire
4. MeridianLink’s Recognition in IDC Fintech Rankings: A Boost in Reputation
MeridianLink has recently been recognized in IDC’s Global Fintech Rankings, securing a spot in the Top 50. This accolade acknowledges the company’s commitment to digital transformation within the financial services sector, where it focuses on providing cloud-based software solutions for banks, credit unions, and financial institutions.
Being named to this prestigious list elevates MeridianLink’s reputation within the fintech community. This recognition could help MeridianLink secure more significant contracts with major financial institutions, as industry recognition often leads to increased trust among potential clients. Additionally, this placement in the IDC rankings may serve as a strategic advantage when pursuing funding and partnerships in a competitive market.
This recognition is a testament to MeridianLink’s innovation in fintech, showing how its cloud-based solutions align with industry trends toward digital-first financial services.
Source: Business Wire
5. Leadership Change at Alliant Credit Union: Navigating Transition with New Interim CEO
Alliant Credit Union has named Ken Schaafsma as the interim CEO following the departure of Dennis Devine. Schaafsma, who was previously the CFO, will guide the organization through this transitional phase as it searches for a permanent CEO. Leadership changes in financial institutions often signal shifts in strategic focus or operational adjustments, and Schaafsma’s background in finance could mean an emphasis on fiscal discipline and profitability.
As a credit union with a significant member base, Alliant’s choice of leadership may influence its approach to digital services and customer engagement. With Schaafsma’s familiarity with the organization’s financial health, his interim tenure may bring stability during this transitional period.
In an industry undergoing rapid digital transformation, Alliant Credit Union’s ability to maintain a clear strategic vision and leadership stability will be crucial in keeping pace with fintech competitors.
Source: Fintech Futures
The post Fintech Pulse: The Latest Trends and Insights Shaping Fintech appeared first on HIPTHER Alerts.
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