The Mint Corporation (TSXV:MIT,OTCQB: MITJF) has a planned initial deployment of 300,000 Mastercard branded payroll cards to disburse salaries to government employees
SmallCapPower | July 5, 2018: The Mint Corporation (TSXV:MIT,OTCQB: MITJF) Thursday announced that its subsidiary, Mint Gateway for Electronic Payment Services LLC, has entered into a payment processing services agreement for the processing of Mastercard branded payroll cards in an African-based payroll card program. Shares of Mint Corporation climbed nearly 9% in early Thursday trading.
The program has a planned initial deployment of 300,000 Mastercard branded payroll cards to disburse salaries to government employees. The initial deployment of 300,000 cards is expected to be completed within 12 months and would represent a 75% increase in the number of cards processed by Mint. The initial term of the contract is for three years with annual renewal terms thereafter at the election of the parties.
Mint Corporation currently provides employers with automated payroll services and a proprietary Automated Teller Machine (ATM) network for unbanked employees in the United Arab Emirates (UAE). Mint’s majority-owned subsidiary, Mint Middle East LLC, today has a cardholder base of more than 400,000 migrant workers in the UAE and is the preferred payroll platform for several licensed exchange houses in the UAE.
According to the World Bank, money remittance from the UAE is a US$33 billion opportunity, and the Central Bank of the UAE has stated that more than 75% of the total money remittances in the UAE happen via licensed exchange houses. Mint’s technology platform is already integrated with several of the leading exchange houses in the UAE.
This move into Africa follows Mint’s April 5, 2018, announcement that it has obtained an option to acquire a 75% ownership interest in vPay, a mobile payment automation platform in India. According to a Ubika Research note, the addressable market in India is forecasted to reach approximately US$1 trillion in 2023 from US$200 billion, with an implied five-year CAGR of 37%. Given the rate of exponential growth in the broader market, payment processing businesses attract significant capital and command premium valuations. This attractive entry point will enable Mint to leverage the existing capabilities of its UAE payments platform and apply its technology stack to vPay’s established corporate client base.
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