Coupled with further untapped opportunity and an addressable market of over 150 countries that are currently not serviced by Google Pay, Fobi said it anticipates the acquisition of PassWallet positions the company to expand into the FinTech space.
(, ) Inc said it has signed an agreement to acquire PassWallet, a leading app for managing and utilizing wallet passes on Android phones, in a move it expects to provide near and long-term revenue growth.
The Vancouver-based artificial intelligence (AI) company said PassWallet, by Google Play Store downloads, works with other leading wallet pass companies and supports more than 150 countries where Google Pay is not supported.
It will fund the €888,000 (US$1.03 million) transaction with €355,200 paid in cash and €532,800 in Fobi shares, which will be subject to a restricted period of four months and one day from the date of issuance.
“This acquisition of PassWallet positions Fobi as an up and coming leader in the digital wallet space,” CEO Rob Anson said in a statement.
“The company has made great strides this year and this key strategic development positions us extremely well, enabling us to leverage and monetize on a standard ARPU (average revenue per user) model."
“With over six million downloads currently, management believes that by leveraging our artificial intelligence and data solutions as well as the integration of Fobi’s marketing power together with the global wallet pass growth rates, that this number will grow significantly in 2022.”
Coupled with further untapped opportunity and an addressable market of over 150 countries that are currently not serviced by Google Pay, Fobi said it anticipates the acquisition of PassWallet positions the company to expand into the FinTech space.
It noted that the global mobile wallet market addressed by PassWallet is forecasted to achieve significant growth in the coming years due to the growing popularity of mobile wallet payments and applications across multiple industry verticals.
A recent report from Research Dive estimates the market will grow from $11 billion in 2020 to $46 billion by 2028, representing a compound annual growth rate (CAGR) of 18.9% for an industry already in the billions and a significant growth opportunity for Fobi, it added.
Combining the acquisition of PassWallet with the global strategic partnerships and alliances already announced by Fobi to date, it said it has an opportunity to pursue the unbanked digital wallet opportunity with some of the top payment companies in the world.
“PassWallet will be complementary to many of Fobi’s existing services and will significantly enhance our ability to drive even more engagement with consumers,” said Richard Lee, senior vice president of Corporate Strategy & Corporate Development.
“With this acquisition, it will provide Fobi with greater opportunities and applications leveraging the mobile wallet, including entry into additional markets at an even faster pace. We are truly building something special here.”
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