The $2.2 Trillion Market Flying Under the Radar
FN Media Group Presents SafeHaven.com Market Commentary
LONDON, June 20, 2018 /PRNewswire/ --
Most investors have probably heard of "Fintech." It's a catch-all term for P2P Lending, Payment Tech, Next-gen Financial Services and even Cryptocurrencies. Mentioned later in this commentary includes: Blackberry Ltd. (NYSE: BB,) Celestica Inc. (NYSE: CLS), Microsoft (NASDAQ: MSFT), Overstock.com (NASDAQ: OSTK), FireEye, Inc. (NASDAQ: FEYE).
According to KPMG, investors poured $31 billion into it in 2017. Nearly all of them missed the bigger opportunity. Soon, two billion unbanked consumers could be set to enter the financial system for the first time in history. Up until now they've been trapped in the cash only economy. Now, a revolutionary new payment platform promises to set them free.
QPAGOS (QPAG) - the company behind this technology - is already up and running in Mexico with a potential customer base of 84.5 million. Their next target? The United States. And, they've got a unique $28 billion "back door" to use in seeking to penetrate the American market.
Here are five reasons one needs to know about QPAGOS today:
- A $2.2 Trillion Revolution Goes Global
- Over 2 Billion Unbanked Consumers
- Huge Potential Customer Base In Mexico
- The $28 Billion Backdoor To U.S. Markets
- Bring Bitcoin To A New Class Of Investors
A $2.2 Trillion Payments Revolution Is Spreading Across The World
When most think of Fintech, they picture global centers of innovation like Silicon Valley, New York or London. Rarely are Nairobi, Mumbai or Mexico City on the top of that list. Yet that's exactly where one of the biggest opportunities is.
According to Business Insider - 2 billion people around the world have no bank account, or access to a financial institution via a mobile phone, or any other device. They are the "Global Unbanked." With a population greater than Africa and South America combined - they could soon become a big deal for investors. The winners in this space could be the next PayPal, Western Union or Visa.
By 2020, Mckinsey reports the global payments industry will generate $2.2 trillion in revenue every year. Mobile payments alone were a $620 billion annual industry in 2016. Yet roughly 2 in every 7 people on Earth are locked out of it.
Today, they can't deposit money, or earn interest. They can't get a loan to buy a home or start a business. They have zero interaction with the financial system. If it is possible to solve their technological challenges, it could bring potentially billions of grey market cash transactions online. And, there's a fortune to be made in the process.
Companies like QPAGOS (QPAG) could capture a growing chunk of it. They know something most Fintech innovators don't.
As of 2014, roughly 94 percent of adults in OECD countries had a bank account. Over 95 percent owned a cellphone. But around the rest of the world, it's significantly less. If a company wants to be a major player in this new industry, they'll be forced to deal with large amounts of cash. They'll need to plan for multiple, unconventional devices.
They need a platform that's fully integrated into everything from a self-service kiosk for the cash economy to a mobile application, a POS device, or a PC. That's precisely what QPAGOS has built.
Meet The Company Bringing Digital Finance To 2 Billion Unbanked Consumers
QPAGOS (QPAG) isn't just a payments company. They haven't merely invented a technology. They've built an entire platform and ecosystem.
The QPAGOS network connects merchants, consumers and financial institutions and covers payments to retailers, governments, telecom, utilities and more, through multiple devices including end users' personal mobile phones and self-service kiosks. It's a bridge from the unbanked, cash economy to the $2.2 trillion payments industry.
Some of their services include:
Mobile Cashiers.
"Monedero" Mobile Payments.
POS Devices.
Payment Solutions Integration.
Then there's their true "silver bullet" technology:
QPAGOS Self Service Kiosks
With user-friendly touch screens, these kiosks allow users to make payments to over 140 different utilities, merchants and service providers. Users can search and select a recipient on the display, deposit their payment in cash and, within minutes, the payment is received on the other end.
For the 2 billion people globally with no bank account, or access to a financial institution via their mobile phone - this is a total gamechanger. For QPAGOS (QPAG) it has an enormous profit potential.
The company plans to collect payment processing fees like any other payment gateway, as well merchant/service provider commissions and fees. They will sell and rent their QPAGOS Kiosks on 24 and 36-month leasing plans.
With a potential audience of up to 2 billion unbanked consumers - that network could eventually have greater potential reach than anybody but Facebook.
The Power To Unlock A Customer Base Of Up To 84.5 Million In Mexico Alone
From their headquarters in Mexico City, QPAGOS (QPAG) has an incredible geographic edge over their U.S. based competition. With a population of nearly 130 million and a GDP of $1 trillion - Mexico is the 15th largest world economy and 2nd largest economy in Latin America, after Brazil.
Yet, Mexico remains a cash-dominated society. Approximately 65 percent of Mexicans are unbanked, and 80 percent of the retail payments are exchanged in cash. Only 2 percent of their $203 billion in retail sales were online.
This is the enormous unbanked market QPAGOS is actively targeting. The company has significant penetration in Mexico City, along with Monterrey, Culiacan, Mazatlan and Acapulco. In total they've installed 700 kiosks nationwide.
They've also integrated over 140+ service providers into their payment platform, including typical utilities like gas, water, electricity, phones, and mobile phones. These terminals can be found all around the country. It's a transformational technology platform, and it could introduce 84.5 million Mexicans to the global financial system for the first time.
With 107 million mobile subscribers - PWC Telecom estimates the market for on the fly mobile payment "top ups" in Mexico is worth $12 billion. QPAGOS also estimates there's an addressable market for over 214,000 kiosk locations, and ultimately some 320 million payment transaction per month.
The company is already growing fast. On May 23rd, 2018 - they reported quarterly revenues of $1,464,789 - a 58 percent increase over the same quarter in 2017. And, Mexico isn't the whole story. Not by a long shot.
A $28 Billion Back Door To The U.S. Market
With growth proceeding apace south of the border, QPAGOS (QPAG) is already shifting their focus to the long term target: the United States. There are over $28 billion in annual remittance flows between the two countries.
California is ground zero for their U.S. strategy. At 39.5 million, it's the most populous state in America. With GDP of $2.44 trillion - well over twice the size of Mexico - it's also an economic powerhouse. It's also the 6th largest economy in the world - just ahead of France.
The demographics in California are an advantage for QPAGOS. According to 2015 U.S. Census Bureau estimates - 38.8 percent of the population is Hispanic. A whopping 1 in 4 Californians have Mexican heritage.
The state is responsible for a huge chunk of the $28 billion remittance pie. Right now these transactions are difficult and costly. But QPAGOS believes their Kiosks could eliminate friction, reduce costs - and quickly capture market share.
More importantly - with every remittance payment sent, the company could be acquiring two new customers into the network (sender and receiver). In Phase 1 - they hope to deploy 1,000 devices in California. In Phase 2 - they intend to expand that roll out to 10,000 units across the United States.
QPAGOS Cryptocurrency ATMs Open Bitcoin To An Entire New Class Of Investors
One of the biggest stories of the last year has been the rise of cryptocurrencies like Bitcoin, Ripple or Ethereum. It was impossible to turn on the TV without hearing about it. Individual coins exploded in value by as much as 2,099,743 percent.
Research analysts at the Royal Bank of Canada (RBC) see cryptocurrency, blockchain technology and decentralization as a potential $10 trillion ecosystem. Yet when personal finance portal Finder surveyed 2,001 American adults in 2018, it found that just 7.95 percent of the population has invested in a cryptocurrency. Globally that percentage is likely far lower.
Now QPAGOS (QPAG) is set to bring Bitcoin to an entirely untouched market.QPAGOS plans for consumers in Mexico to soon be able to buy cryptocurrencies with cash, directly from QPAGOS kiosks at roughly 700 locations around the country. And very shortly, it plans for that technology to be arriving in America.
Upcoming Major Catalysts
With up to 84.5 million unbanked consumers in Mexico, and an estimated 2 billion worldwide - the potential for QPAGOS (QPAG) is sky high. Not only does their technology penetrate the cash economy - it creates a bridge to the global financial system that could be very lucrative in the years to come.
The next step for QPAGOS is to establish a beachhead in the United States. This is the key focus of the management's business development efforts. Success here could be a major driver in the future of the company.
Other companies looking to take over the fintech space:
Blackberry Ltd. (NYSE:BB) made its name as a cell phone manufacturer, but many don't realize that Blackberry is actually providing mobile cybersecurity for government agencies worldwide. It's also playing security consultant.
Celestica Inc. (NYSE:CLS) is a manufacturer of electrical devices used in IT, telecommunications, healthcare, defense and aerospace industries, though it recently has shown a significant interest in the development of blockchain and IoT solutions, Celestica has also shown interest in artificial intelligence which could be an absolute game-changer in its current devices
Microsoft (NASDAQ:MSFT) is one of the most innovative and well-known companies within the tech sector, but its Windows platform is the most widely used operating system on the planet. First launched in 1985, Windows has shaped what is expected from a personal home computer. But Microsoft is appealing to investors for more just its Windows platform.
Overstock.com (NASDAQ: OSTK) According to one analyst, it's the perfect blockchain play. After patiently developing blockchain tech through its subsidiary TZero, Overstock.com had a big year in 2017 and the ride is set to continue.
FireEye, Inc. (NASDAQ:FEYE) is one of the most impressive cybersecurity barnstormers out there. It only went public in September 2013, and by December that same year it was spending $1 billion on a major acquisition, Mandiant, which was one of the top data breach and response companies in the space.
By. Charles Kennedy
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