The share price of ASX-listed fintech Peppermint Innovation (ASX: PIL) jumped more than 16% on news it has begun a pilot test with one of the Philippines’ fastest growing distribution networks, SANTE Barley.
The pilot involves 100 of SANTE Barley’s 200,000 strong network of direct members, business partners and business branches using Peppermint’s white-labelled mobile phone APP, called League Pay.
As part of the pilot, SANTE Barley’s business partners would be able to accept money from customers who want to pay their household bills, buy eLoad (mobile phone air time) and, pending appropriate regulatory approval, provide mobile money transfer or remittance services to the Filipino people.
At the conclusion of the planned four-week pilot programme, the ‘League Pay’ App will be progressively rolled out to the 199,900 remaining members of SANTE Barley’s distribution network across the Philippines.
Once the platform is commercially launched in the first quarter of 2018, Peppermint and SANTE Barley would share revenue each time a transaction occurred.
Peppermint’s target is to double its current annualised revenue of $1.3 million over the first 12 months after commercially launching with SANTE Barley. It expects the commercial program with SANTE Barley will contribute significantly to its objective of achieving $50 million in consolidated revenue over the next four years.
Peppermint Innovation Managing Director and CEO Chris Kain said about 70 per cent of Filipinos currently did not operate a bank account and millions of Filipinos received their weekly wage in cash.
“Many Filipinos are forced to physically pay their bills in cash, requiring them to travel long distances across town to ensure all of their household bills are paid,” he said.
“Peppermint’s innovative mobile payment and remittance platform is ultimately designed to make life easier for Filipinos by offering secure and easily accessible financial services such as money transfers, eload purchases and household bill payment services.”
Mr Kain said partnering with SANTE Barley was a major coup for Peppermint, given the company’s reputation as one of the fastest growing distribution networks in the Philippines.
“This trial is a highly significant opportunity for Peppermint to bolster our position in the Philippines as the number one provider for mobile financial services to the non-bank sector,” he said.
“The pilot represents a huge boost for Peppermint on our path towards full-scale commercialisation of our proprietary mobile banking payment and remittance platform and I expect it will contribute significantly to company revenues over the next four years.”
SANTE Barley CEO Joey Marcelo said the development of a SANTE Barley League Pay APP that provided customers with the opportunity to pay their household bills and also purchase mobile airtime would help grow its business, both in the Philippines and internationally.
“We are delighted to be partnering with Peppermint and see this pilot as a great opportunity to enhance and diversify the quality products that our business partners already deliver to our market.” Mr Marcelo said.
The SANTE Barley pilot program was the fourth to be conducted by Peppermint this year involving different agent networks.
During the past few months, almost 500 representative agents of Filipino businesses MyWeps, Metro Gas and SUNMAR Express had conducted live pilot testing to help refine and advance Peppermint’s innovative mobile payments and remittance platform.
Mr Kain said the pilot testing had provided valuable feedback and insights, as well as suggesting some improvements to the platform’s user-friendly functionality.
