Toronto, Ontario--(Newsfile Corp. - May 23, 2024) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), an emerging North American leader in the Banking-as-a-Service (BaaS) market with a platform that modernizes budgets and payments for enterprises and consumers provides an operational update for its recently launched Education Channel Product "Hank EDU". All figures in USD.
In December Hank announced the signings of both Seminole State College of Oklahoma and Lubbock Christian University of Texas to use the Hank Fast Funds product for disbursements. Both schools have been successfully launched and are actively using the platform for disbursements. Hank has disbursed approximately $1,000,000 to over 1,000 unique students since launching EDU in Q3 of 2023. Hank has an additional three schools currently undergoing implementation and expected to launch in the near term initially for disbursements. For Hank Fast Funds, Hank charges a fee per student receiving funds, paid for by the school, school minimum access fees, and other usage fees to handle the automation of this complex function using its Hank Fast Funds Product.
The Company has also completed a critical SIS (Student Information System) integration with CAMS college platform that allows Hank to perform payment processing and ledger updates for all schools on the CAMS system and their sister platform, Elements SIS, provided by Thesis. This integration provides Hank access to approximately 200 US schools for tuition processing, a lucrative market where Hank has developed a feature rich product to process tuition up front or in installments. Hank's focus is to target tuition processing contracts with schools on CAMS, in addition to continuing to execute additional student disbursement contracts. The CAMS integration was partially funded by Clarendon College of Texas, Hank's first tuition processing client. Clarendon is expected to start processing tuition in June, for the summer semester using Hank's integrated and unique processing technology.
Hank EDU tuition processing earns revenue calculated as an average of 3% of total tuition processed during each seasonal enrollment period during the school year with the September and January enrollment periods being the largest. As an example, 10 schools consisting of 4,000 students each at an average tuition of $4,000 per student, with 50% of tuition being paid via credit card, amounts to approximately $80 MM in gross tuition being processed in a September enrolment cycle. This would represent $2,400,000 in revenue for Hank in that period at roughly 50% margin. Initially, Hank will focus on signing and launching processing schools on the existing integrated platform with CAMS with the goal of achieving strong revenue growth in the coming quarters and building up to material 2025 revenue.
Hank will continue to integrate with additional SIS platforms to access additional schools. There are four major SIS platforms in the market that provide access to over 3000 schools of 5000 schools in market.
Michael Hilmer, Hank CEO noted, "As a new entrant to the Education market, we continue to earn solid positive feedback on useability and feature sets that eliminate effort and cost in the business office, while adding greater transparency to cash being disbursed or received. Our funnel continues to grow with more imminent closings to come. We are pleased with this progress and are very focussed on launching tuition processing schools that leverage existing integrations to drive significant growth in student usage and revenue."
About Hank Payments Corp.
Hank Payments Corp (the Company or "Hank") is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts ("Partners") that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners can benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets or improve cash flow using Hank. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. The Company acquires Users through various channels including (i) small to medium sized enterprises (the "SME Partners") and (ii) large enterprise businesses (the "Enterprise Partners"). The Company's BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts, and projections and include, without limitation, statements regarding the future success of the Company's business. Financial performance figures in Canadian Dollars unless otherwise indicated by "U" representing United States Dollars.
The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company's website at www.hankpayments.com.
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