Peppermint Innovation, an Australian fintech which completed a backdoor ASX-listing via Chrysalis Resources, is building a business based on tiny mobile payments in the Philippines.
The company wants to develop the global remittance market, providing a mobile payment platform for millions of people not accessing to traditional banks.
Peppermint’s 2 cent shares opened Friday on the ASX. They traded at 2.1 cents before closing at 2 cents.
The business is based on small payments.
Chris Kain, the CEO of Peppermint, gives the example of the taxi driver who takes him from the airport in Manila to his hotel.
“He was from mindanao in the south and he was in Manila driving a taxi to support his wife and children,” Kain told Business Insider.
“He earns about 2000 pesos a fortnight and he would probably sent 1800 home through traditional sources which would charge anything between 10% and 15%.”
These traditional ways of moving money include a pawn broker network and a courier company which charges between 10% and 15% of the total sum sent.
With Peppermint’s solution, the charge would be 3% to 5%, a significant saving.
The Philippines has a population of 100 million and about 105 million mobile phones. About 75% of adults don’t have a bank account.
Peppermint has spent four years developing and integrating technology which is now being used by all three of the top commercial banks in the Philippines: Metrobank, Unionbank and UCPB.
The company is going to use the proceeds of its backdoor float, $3.87 million, to expand its platform and market throughout Asia, Europe and the rest of the world.
The World Bank estimates that remittances sent by migrants working away from their home countries in developing regions grew by 4.4% in 2014 to $US436 billion.