Toronto, Ontario–(Newsfile Corp. – June 1, 2020) – The Mint Corporation (TSXV: MIT).
As we navigate these turbulent times, we wanted to give you an update on how we believe The Mint Corporation (TSXV: MIT) (“Mint”) is well positioned for 2020 and beyond. We would like to highlight several significant developments over the past few months and our current plans to further build our business.
New Majority Shareholder
At the end of December 2019, Global Business Services for Multimedia (“GBS”), Mint’s business partner in the United Arab Emirates (“UAE”), became majority owner of Mint through its purchase of the Mint common shares formerly held by Gravitas Financial Inc. (“GFI”). Mint welcomed this development as it now brings a greater alignment and presents new opportunities to leverage the Mint UAE’s technology platform for launching in North America.
Sale of Payroll Card Disbursement Business Provides Capital for Higher-Value Opportunities
In January 2020, Mint’s subsidiaries Mint Middle East LLC and Mint Gateway for Electronic Payments LLC (collectively “Mint UAE”) successfully entered into a transaction for the sale of Mint UAE’s payroll card disbursement business (the “Sale”) to a major international payments company. As we disclosed in our press release on February 4, 2020, Mint UAE received an initial cash payment of approximately C$29.5 million and has the potential to earn an additional performance-based cash payment of up to approximately C$7.1 million based on the success of the migration of the payroll card portfolio. Notably, Mint UAE retained all its intellectual property, its globally certified payment platform, customer relationships and the team to continue to execute on our business plan (other than the payroll card program manager business for which there is a three year non-compete agreement with the buyer).
Mint does not need to raise capital to fund Mint UAE
Prior to the Sale, Mint’s primary use of capital was to provide funding to support the Mint UAE operations. With the conclusion of the Sale, Mint UAE is well capitalized to execute on its business plan to focus on higher value opportunities, and Mint does not anticipate having to provide further cash funding to support the Mint UAE operations. Based on public information of similar payroll card transactions, the Sale was conducted at a premium valuation. The successful exit of one of its product lines at a premium valuation validates the execution capability of the management team and demonstrates the significant value of Mint.
Current Financial Technology Capabilities
Mint today is a fintech enterprise with several notable strengths, including:
- Seasoned and strong team with a track record of execution and creating value
- Cash on hand to execute its business plan to build value
- Mobile app enabled card management platform
- Cloud-based merchant management services
- Acquiring and payment gateway platform
Following the Sale and a review of opportunities to capitalize on Mint’s technology, Mint intends to shift its strategic focus to launching merchant management services targeted at small business, mobile enabled prepaid card products such as multi-currency and general purpose prepaid cards integrated with a digital banking platform that can be offered both as a white label product offering for other banks and/or financial institutions, and as a service to personal and small business clients in partnership with licensed financial institutions in the UAE.
This digital banking platform, in conjunction with our card management, payment gateway and merchant management platforms, will round out Mint’s technology across the full spectrum to service financial institutions, small business clients and personal customers. The initial focus will be on the UAE market, following which we intend to expand within the Gulf Region and into North America. Given the scope of the Mint technology now available and being developed, Mint has the flexibility to develop and focus on the unique needs of each market.
As always, we would like to thank our shareholders for your continued belief and support as we focus on providing excellent services to our customers and building value for all shareholders.
CEO – The Mint Corporation
The Mint Corporation through its majority-owned subsidiaries (the “Mint Group”), is a globally certified payments company based in Toronto, Canada with its primary business in Dubai, UAE. The Mint Group provides employers, employees and merchants with best-in-class financial services supported through its payment’s platform certified by MasterCard and UnionPay. Mint brings modern financial conveniences, at reasonable cost, to financial institutions, merchants and consumers.
Forward looking Statements
This Letter to the Shareholders contains forward-looking statements. Forward-looking information includes the statements relating to the amount of an additional performance-based cash payment pursuant based on the success of the migration of the payroll card portfolio, that Mint does not anticipate having to provide further cash funding to support the Mint UAE operations, Mint’s intention to shift its strategic focus to launching merchant management services targeted at small business, mobile enabled prepaid card products such as multi-currency and general purpose prepaid cards integrated with a digital banking platform that can be offered both as a white label product offering for other banks and/or financial institutions, and as a direct service to personal and small business clients in partnership with licensed financial institutions in UAE and Mint’s initial focus on the UAE market and intent to expand within the Gulf Region and into North America. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
The forward-looking statements are based on certain expectations and assumptions made by Mint. Although Mint believes that those expectations and assumptions are reasonable, undue reliance should not be placed on the forward-looking statements because Mint can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those anticipated due to a number of factors and risks, including, but not limited to, the ability of Mint UAE to successfully migrate the payroll card portfolio pursuant to the Sale, the ability of Mint and Mint UAE to execute on its business plan and the required expenditures to execute its business plan, the ability of Mint and Mint UAE to launch digital banking services, payment gateway services and execute agreements with licensed financial institutions and meeting the regulatory requirements in UAE or any other market Mint may choose to enter and the duration and effects of the COVID-19 pandemic on local, national and global economies. The forward-looking statements contained in this Letter to the Shareholders are made as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Mint Corporation
Suspected Digital Fraud Originating from Canada Soars in 2023; Canada with Third Highest Increase in Fraud Rates Among 19 Countries Analyzed by TransUnion
- 39% growth in the rate of suspected digital fraud attempts year-over-year (YoY) for transactions originating from Canada in 2023.
- 60% of Canadians surveyed said they were recently targeted with fraud, of which 10% fell victim.
- 93% said having confidence their personal data will not be compromised is important when choosing who to transact with online.
- 42% said they abandon their online shopping carts due to fraud and/or security concerns.
- 8.4% of e-commerce transactions in 2023 were targeted by suspected fraud attempts originating from Canada.
- 202% increase in the volume of suspected digital fraud attempts from Canada between 2019-2023.
- 258% increase in the rate of suspected digital fraud attempts originating from Canada within telecommunications sector from 2022-2023.
Canada experienced a significant increase in suspected digital fraud attempts in 2023, with more than 5% of all transactions where the consumer was located in Canada being targeted by suspected fraud, revealed a new data analysis from TransUnion (NYSE: TRU). While the rate of suspected digital fraud grew YoY globally by 8% from 2022-2023, Canadian-based fraud significantly outpaced the global rate with a 39% increase in 2023 from 3.6% in 2022. Canada had the fifth highest rate of suspected digital fraud and the third highest rate increase from 2022-2023 out of the 19 countries analyzed.
The pivot to increasingly digital transactions since the beginning of the pandemic means Canadians face a new norm when it comes to the elevated severity and volume of attempted digital fraud rates. At the same time, the number of digital transactions has markedly risen in the last few years, further fuelling the volume of potentially fraudulent activity with a 202% increase in suspected digital fraud attempts originating from Canada from 2019-2023. The rate of suspected fraudulent digital transactions also increased during this same period by 105%.
“Digital fraud attempts from Canada grew dramatically over the past year across most industries. As the world accelerated digital engagement, fuelled by the pandemic, Canadian consumers and businesses face a new norm with significantly elevated fraud risks,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “Canadian businesses and consumers are challenged to remain one step ahead of these increasingly sophisticated and ever evolving fraudsters. Fraudsters continue to prey on organizations that have direct access to money, products or services with easily transferable monetary value. There is no doubt that fraud remediation will continue to be a key priority for organization and businesses.”
Top Industries Targeted by Suspected Digital Fraud from Canada Include Retail, Communities, Video gaming, Gambling and Financial Services.
In 2023, the retail sector experienced the highest rate of suspected digital fraud, with just over 8 in every 100 transactions (8.4%) where the consumer was located in Canada being suspected fraudulent. The rate of suspected digital fraud in 2023 (the number of fraudulent transactions divided by all transactions in that industry) originating from Canada for all industries analyzed were:
- Retail: 8.4%
- Communities (online dating, forums, etc.): 6.2%
- Video gaming: 4.6%
- Gambling: 4.0%
- Financial services: 3.1%
- Telecommunications: 2.7%
- Insurance: 2.5%
- Travel and leisure: 0.6%
- Logistics: 0.4%
Significant Increase in Rate of Suspected Digital Fraud Across Multiple Sectors.
Increased suspected digital fraud rates originating from Canada spanned every industry except one analyzed. The telecommunications industry saw the most significant increase with a 258% jump from 2022-2023; followed by communities at 129%; and financial services at 75%. The only industry without an increase was logistics, which experienced a decline of 34%.
Suspected Digital Fraud Attempts Shift to New Industries Globally vs. Canada
|Canada Rate Change from 2022-2023
|Global Rate Change from 2022-2023
|Communities (online dating, forums, etc.)
|Travel & Leisure
Fraud Concerns have Strong Influence over Who Canadians Choose to do Business with and make Purchases from.
TransUnion survey data from December 2023 shows that Canadians’ fraud risk and security concerns have significant influence over who they choose to do business with. This includes:
- 42% of Canadians abandon their online shopping carts due to fraud and/or security concerns.
- 71% will not return to a website if they have fraud concerns.
- 93% of Canadians said having confidence their personal data will not be compromised is important when choosing who to transact with online.
- 34% of Canadians have switched their online transactions to another website due to fraud or security concerns.
- 46% of Canadians said that security of their personal data was the number one consideration when deciding what online company to do business with.
Canadians Report Being Targeted by a Diverse Mix of Fraudulent Schemes.
In the same December 2023 survey, 60% of Canadians surveyed said they were targeted with online, email, phone call or text messaging fraud in the last three months, of which 10% fell victim. Of those who said they were targeted, Canadians reported a diverse mix of fraudulent schemes including:
- Phishing (fraudulent emails, websites, social posts, QR codes, etc., to steal data): 50%
- Smishing (fraudulent text messages intended to trick the victim into revealing data): 43%
- Vishing (fraudulent phone calls intended to trick the victim into revealing data): 38%
- Third-party seller scams on legitimate online retail websites: 22%
- Identity theft (personal information like name, address, phone number or security number was stolen in a company’s data breach): 14%
- Social engineering scam (solicited to transfer or move illegally acquired money on behalf of someone else): 18%
- Stolen credit card or fraudulent charges: 14%
- Money mule scam (solicited transfer or move illegally acquired money on behalf of someone else): 12%
- Account takeover (online account used without permission): 11%
- Unemployment fraud: 6%
The Most Suspected Digital Fraud Occurs at Account Creation.
In reviewing the different points in a consumer journey, the data analysis reveals that the highest percentage of digital fraud occurs at account creation.
Globally, the analysis found that 13.9% of all digital account creation activity involved suspected fraud in 2023. For digital transactions where the consumer was in Canada, the suspected fraud rate at account creation was 4.9% last year. In comparison, the rate of suspected digital fraud at account login in Canada was 3.9% in 2023 (2% globally). When money is being exchanged in the transaction for instance for purchases, transfers, deposits and withdrawals, 2.3% of those types of transactions from Canada were suspected fraudulent (3.6% globally).
Top US Bank, Commerce goes live with loan origination on Temenos banking platform
Temenos (SIX: TEMN), today announced that Commerce Bank, a top US bank, has gone live with Temenos’ (Infinity) loan origination solution, increasing operational efficiency and delivering a frictionless, hyper-personalized customer experience.
The latest go-live follows the successful modernization of the bank’s core banking system, moving from legacy systems for deposits to Temenos’ modern, agile and open platform tailored for the US market. In 2022, the bank migrated over 2.5 million customers and 6.9 million accounts to the Temenos platform.
Named among America’s Best Banks by Forbes, Commerce operates using a “super community bank” model that brings together sophisticated banking products with high-touch, high-tech delivery to create and build deep relationships.
Temenos (Infinity) Loan Origination offers powerful decisioning, highly customizable applications, dynamic features, and extensive third-party integrations. The solution has been deployed to create a fast, omni-channel origination experience for securities-based loans and lines of credit provided though Commerce Trust – Commerce’s Private Bank.
Commerce previously relied on manual calculations, documentation and collateral gathering to process applications, which was complex to configure and set up. With Temenos (Infinity) Loan Origination, Commerce has been able to automate the process with increased digitization to eliminate paper processes, improve reliability and drive end-to-end product origination process down to 5 minutes or less.
John Handy, President and Chief Executive Officer for Commerce Trust, commented: “Commerce helps high-net-worth individuals simplify their complex financial lives. The Temenos’ loan solution will help us keep ahead of the competition, to take the lending experience to the next level, increasing staff efficiency and customer satisfaction.”
Philip Barnett, President – Americas, Temenos, said: “We are delighted to build on our close relationship with Commerce to modernize its loan origination capability. This latest go live proves the strength of our banking platform, which is tailored for the needs of US banks – from large regional incumbents, and global disruptors to challenger banks. Private banking is an increasingly competitive segment in the US and with Temenos, Commerce can continue to differentiate and meet the rising expectations for personalized, fast and easy banking interactions.”
Temenos was recently named a Leader in IDC MarketScape: North America Lending Decisioning Platforms and is ranked as the #1 best-selling banking software for Digital Banking and Channels by IBS Intelligence.
The post Top US Bank, Commerce goes live with loan origination on Temenos banking platform appeared first on HIPTHER Alerts.
Nigerian digital bank FairMoney in talks to buy Umba in $20M all-stock deal, sources say
FairMoney, a digital bank based in Lagos and headquartered in Paris, is in discussions to acquire Umba, a credit-led digital bank providing payroll and financial services to customers in Nigeria and Kenya, in a $20 million all-stock deal, sources tell TechCrunch.
The move signals FairMoney’s interest in growing its customer base by expanding into more countries, specifically Kenya. But it also underscores the challenges facing fintechs in Africa amid a challenging market for startups globally: a $20 million all-share deal would be roughly equivalent to the amount Umba raised from outside investors.
Acquisition negotiations are still in their early stages, according to the sources, who requested anonymity due to the confidential nature of the details. FairMoney and Umba did not respond to requests for comment ahead of publication.
Umba, founded by Tiernan Kennedy and Barry O’Mahony in San Francisco in 2018, was launched as a credit-led digital bank targeting emerging markets. It provides banking services such as loans, current accounts, savings accounts, fixed deposit accounts and bill payments to customers in Nigeria and Kenya.
To date, the digital bank has secured around $20 million in funding, per PitchBook data. Its investors include Costanoa Ventures, Monzo co-founder Tom Blomfield, Lachy Groom, ACT Ventures, Lux Capital, Palm Drive Capital, Banana Capital and Streamlined Ventures.
Meanwhile, FairMoney has been backed by the likes of Tiger Global, DST, Speedinvest and others and has raised just over $57 million, according to PitchBook. It was last valued at between $400 million and $500 million following a bridge round last year.
FairMoney, best known for its lending services in Nigeria, has been looking for more avenues for expansion. In 2020, FairMoney ambitiously entered India as its second market, but beyond a momentum update in 2021, it has not made any more recent disclosures about how that business is doing.
FairMoney has also been expanding its product. The startup’s eponymous app originally launched as a digital lender in Nigeria six years ago. Since then, it has added other financial services, such as debit cards, transfers and payments. It says that it has over six million retail customers.
FairMoney’s previous acquisitions have included PayForce, a sub-brand of YC-backed Nigerian merchant payment service CrowdForce, which it picked up in a cash-and-stock deal worth $15-20 million.
“We see ourselves as a retail bank, but the line between merchants and retail is often blurry,” FairMoney CEO Laurin Hainy told TechCrunch in an interview last year around the PayForce acquisition. “We’ve thought about the merchant space more and more, and we see a lot of potential synergies between what PayForce and we have built independently.”
Umba also started as a retail-focused digital bank in Nigeria before diversifying its offerings to include merchant financing and business banking products in the West African country as well as Kenya. Google Play indicates over 1 million installs of its app, but the number of registered and active users is not disclosed.
FairMoney’s potential acquisition of Umba may not solely hinge on user numbers or product offerings. For one, Umba launched merchant and business-facing products within the last four months, so it’s improbable to have garnered significant traction and volumes in that time frame. FairMoney could likely be more interested in Umba’s microfinance license, obtained in 2022 through acquiring a majority shareholding in Daraja Microfinance Bank. This license allows Umba to offer banking services in Kenya.
Obtaining a microfinance bank license in Kenya can be challenging. Unlike Nigeria, which has over 600 microfinance bank licenses, Kenya has only 14 such licenses. For the Tiger-backed FairMoney, acquiring Umba could streamline entry into Kenya, bypassing the lengthy licensing process that took Umba three years. As such, an acquisition could see FairMoney leverage Umba’s existing infrastructure or combine both fintech capabilities to launch its services in Kenya.
Sources tell us while Umba wasn’t actively seeking a sale, it may find FairMoney’s offer enticing, particularly given its current financial status. Between January and June 2023, the fintech generated $335,000 in revenue while incurring $1.54 million in expenses, as outlined in an investor pitch deck obtained by TechCrunch.
Additionally, after securing a $15 million Series A funding round at a $60 million valuation in February 2022, Umba sought further funding last December. Ultimately, it raised a $1.55 million bridge round at a valuation of just $25 million which is in line with FairMoney’s offer. The fintech may be considering other options, the sources say.
Amid the fintech boom, digital banks and challenger banks in Africa attracted tens of millions of dollars in venture capital investments, spurring numerous players’ emergence with plans to challenge traditional incumbents.
Now the story is different. VC funding continues to tighten, and many of the big bets are not playing out as forecast, with companies missing growth targets and facing challenging unit economics. That has led to more M&A conversations. Just this month, Nigerian neobank Carbon acquired Vella Finance, an SME-focused banking service provider. And FairMoney’s potential acquisition of Umba, if successful, would mark its second deal in two years.
The post Nigerian digital bank FairMoney in talks to buy Umba in $20M all-stock deal, sources say appeared first on HIPTHER Alerts.
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