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The Mobile Payments Market is set to Grow due to Technological Innovation

C.PERK, PYPL, PAY, SQ

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, April 2, 2018 /PRNewswire/ --

According to data provided by Allied Market Research (AMR), the mobile payment market is anticipated to grow at a CAGR of 33.8% from 2017 to 2023 and reaching a market value of $4,574 billion by 2023. The growth projections are attributed to an increasing demand for hassle-free purchase of goods and services, as well as an increased preference of consumers toward digital and cashless payments. Based on mobile payment type, the mobile payment market is split into mobile wallets/bank cards and mobile money. Increased penetration of smartphones, growth in e-commerce industry, and change in lifestyles are all major factors contributing to the growth of the mobile payments market. Glance Technologies Inc. (OTC: GLNNF), PayPal Holdings, Inc. (NASDAQ: PYPL), Verifone Systems, Inc. (NYSE: PAY), Fiserv, Inc. (NASDAQ: FISV), Square, Inc. (NYSE: SQ).

Research Analyst, ICT & Media at AMR, Kalyani Sonawane explained, "The mobile payment market is in its maturity phase and is expected to grow at a CAGR of 33.8% during the forecast period. Increase is penetration of smartphones, growth in m-commerce industry, and rise in adoption of mobile payment in emerging economies drive the growth of the mobile payment market."

Glance Technologies Inc. (OTCQB: GLNNF) also listed on the Canadian Securities Exchange under the Ticker (CSE: GET). After the market close last week, the company announced breaking news for the, financial results for the fourth quarter and fiscal year ended November 30, 2017.

"We made tremendous progress in fiscal 2017 towards establishing Glance Pay as a mobile payment system that offers unique benefits to both merchants and consumers. We expanded our footprint into new locations and verticals, began working on a rewards based cryptocurrency, and raised the capital to fund our growth," said Glance CEO Desmond Griffin. "We are very excited about the opportunities ahead as we continue to advance our technology roadmap and execute on our vision."

Fiscal 2017 Financial Highlights: 

  • Revenue of $1,070k increased 132,723% from $8k in fiscal 2016.
  • Operating expenses of $10,427k increased 383% from $2,158k in 2016, with expenses growing in most categories as business activity ramped. Most notable was a $4,458k increase in sales & marketing, and a $2,948k increase in stock option-based payments, a non-cash expense driven in part by the high stock price at November 30, 2017.
  • Loss from operations was $9,356k, or $(0.12) per share, increased 351% compared to $2,150k, or $(0.04) per share, in fiscal 2016.
  • $18.2 million raised in equity financing during the fiscal 2017. This figure does not include approximately $11.05 million of gross proceeds raised through a brokered bought deal financing in December 2017.
  • As at November 30, 2017, the Company had $10,294k of cash ($361k a year earlier), no debt ($nil in 2016) and a positive working capital position of $9,803k ($323k in 2016).

Fourth Quarter 2017 Financial Highlights: 

  • Revenue of $687k in Q4 2017 compared to $240k in Q3 2017, and $7k in Q4 2016.
  • Net loss of $5,863k in Q4 2017, representing $(0.08) per share or $(0.04) diluted, compared to $1,032k in Q4 2016, representing $(0.02) per share or $(0.01) diluted.

Fiscal 2017 Operating Highlights: 

  • More than doubled the number of signed merchants to 282, from 130 at the end of 2016.
  • Upgraded the mobile payment application features for a more enhanced customer experience.
  • Diversified market space into the retail and services industry, demonstrating agility to serve more markets.
  • Initiated a blockchain strategy to deliver, among other applications, a rewards-based cryptocurrency.
  • Launched Glance Dollars, a form of credit that can be distributed to app users for compensation (referrals) or for promotions and competitions.
  • Launched Merchant Dollars, an in-app digital coupon which is specific to a particular restaurant for a specific time period, enabling business and merchant partners to do promotional events without effort.
  • Targeted new vertical markets through licensing agreements signed with Cannapay Financial Inc., Active Pay Distribution Inc., and Euro Asia Pay Holdings Inc.

The Company's complete financial results for fiscal 2017 are available in its audited annual financial statements and annual management's discussion and analysis for the year ended November 30, 2017, each of which have been filed with Canadian securities regulators at http://www.sedar.com.    

Outlook - Management intends to pursue a number of technology, product and marketing initiatives to continue to drive growth in fiscal 2018. The Company's strategic priorities include:

  • Growing monthly recurring revenue by continuously adding new merchants and consumers.
  • Accelerating the roll-out to merchants through a new downloadable merchant app that enables merchants to quickly set up Glance Pay on their own devices.
  • Building a rewards-based cryptocurrency platform using blockchain technology to allow merchants to reward and incentivize their customers.
  • Leveraging the Company's superior anti-fraud technology to expand into online purchases, e-commerce and other markets.
  • Broadening Glance Pay's geographic footprint across more North American cities, building on its existing presence across Canada and its recent launch in California.
  • Working with licensing partners to expand into new vertical markets."”

PayPal Holdings, Inc. (NASDAQ: PYPL) is a leading technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. In January, the company announced fourth quarter and full year results for the period ended December 31, 2017. GAAP revenue growth of 26% to $3.74 billion, or 26% on a foreign currency neutral (FX-neutral) basis with non-GAAP revenue growth of 24% to $3.71 billion, or 24% on a FX-neutral basis. In fourth quarter 2017, PayPal and Synchrony Financial announced an agreement expanding their consumer credit relationship. Under the terms of the transaction, Synchrony Financial will acquire PayPal's U.S. consumer credit receivables portfolio, which totaled approximately $6.4 billion in receivables as of December 31, 2017. Subject to regulatory approval and other customary conditions, this transaction is expected to close in the third quarter of 2018.

Verifone Systems, Inc. (NYSE: PAY) is transforming every day transactions into new and engaging opportunities for merchants and consumers at the last inch of payments and commerce. Recently, the company introduced the first in a line of commerce solutions that brings mobility, payment, and commerce into one powerful, portable device. From tier one retailers to small businesses, merchants around the globe will soon be able to accelerate their business with Carbon Mobile 5. In the palm of a merchant's hand, Carbon Mobile 5 enables checkout and the ability to run Android apps such as point of sale, loyalty and inventory management. It will be available with and without an integrated printer, and both variations come with the advanced feature set necessary to support in-aisle sales, clienteling, endless aisle solutions and much more.

Fiserv, Inc. (NASDAQ: FISV) is a leading global provider of financial services technology solutions. In March, the company announced that it is offering Mastercard® Decision Intelligence™, a comprehensive decision and fraud detection service. Financial institutions working with Fiserv will benefit from this service, which helps them increase the accuracy of real-time approvals of genuine transactions, reduce the number of false declines and improve the overall cardholder experience. Fiserv is the first processor to offer Decision Intelligence to its financial institution clients. Decision Intelligence uses artificial intelligence technology to provide a predictive score by applying thousands of data points and sophisticated modeling techniques to each transaction - helping issuers make more informed authorization decisions.

Square, Inc. (NYSE: SQ) creates tools that help sellers start, run, and grow their businesses. Square enables sellers to accept card payments and also provides reporting and analytics, next-day settlement, and chargeback protection. Square's point-of-sale software and other business services help sellers manage inventory, locations, and employees; access financing; engage customers; and grow sales. Earlier this year, the company announced that it has acquired certain assets of Entrees On-Trays, a premier restaurant delivery service that has served the Dallas-Fort Worth metroplex since 1986. For more than three decades, Entrees On-Trays has been known for its service and hospitality to restaurants, couriers, and customers alike in Fort Worth, sharing Caviar's ethos about partnering with the best restaurants and powering fast delivery to diners.

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