Fintech solutions provider Mint wins second major cardholder transaction for the quarter
The “under banked” refers to individuals and families that prefer to manage their finances through cash transactions instead of more traditional banking services such as checking accounts, savings accounts, credit cards, and loans. Usually the under banked are unable or not willing to get bank accounts. The government of the United Arab Emirates (UAE) has now created the Wages Protection System (WPS) program that ensures workers are treated fairly and paid on time. These regulations require all employees to be paid electronically.
The Mint Corp (TSXV: MIT) through its majority owned subsidiaries are providing innovative fintech solutions to the overlooked under banked and under-served wage earners in the UAE. The company, a globally certified payments company, provides employers with payroll cards for their under banked employees through a globally accepted MasterCard or Union Pay card and a linked mobile wallet, where their salaries are deposited. Using a world class mobile app (the Mint Mobile App) as well as the card, this mobile wallet effectively becomes the employee’s bank account. These app services include checking balances, locating partnered ATMs, recharging mobile phone credits, sending money anywhere in the world with the click of a button, the ability to book travel as well as offering specific deals from over 15,000 merchants. You can even pay your road tolls.
According to the World Bank the under banked market globally is estimated at over 2 billion, with 20 million being within the Gulf countries. Government statistics in the UAE put the total population of migrant workers at 5 million.
On November 26, 2018 The Mint Corp. announced that its majority-owned subsidiary Mint Middle East LLC (“MME”) has generated strong incremental sales growth since the launch of The Mint Mobile App in October 2018. Spending transactions on mobile recharge minutes has increased by over 300% via the Mint Mobile App on a month-over-month basis.
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On January 8, 2019 Mint also announced that its majority-owned subsidiary, Mint Gateway for Electronic Payments Services LLC (“MGEPS”), has won a new customer with a portfolio of over 100,000 payroll card accounts with a leading UAE financial institution. This is the second major cardholder transaction for Mint in less than three months. On October 18, 2018, Mint announced the acquisition of a portfolio of over 100,000 payroll cards. Upon completion of these portfolio migrations, Mint is projecting to have 600,000 cards on its platform.
Abdul Razzak Al Abdullah, Chairman & CEO of MGEPS. states: “Our significant investment in building a world class mobile enabled payment infrastructure to service the under banked is now gaining recognition in the market place. We are seeing several attractive opportunities in the market place and are now well positioned to execute. The technology platform that we have built is tailor made to provide digital financial inclusion for the under banked.”
Financial Technology (“Fintech”) is where the world is heading. This is going to be disruptive to the bank industry as companies like The Mint Corp continue to take advantage of the ever continuing advances in technology, offering services at a much lower fee. The Mint Corp is targeting an in demand service for a large niche area to service the under banked (often overseas foreign workers), starting in the UAE, with enormous potential to grow in the UAE and globally. Definitely one to follow closely.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in ... <Read more about Matthew Bohlsen>