The Mint Corporation’s (TSXV:MIT) announcement today could prove to be a major catalyst for its stock price
On October 4, 2018, The Mint Corporation’s (TSXV:MIT) announced that it has launched its mobile application into the United Arab Emirates (UAE) through its majority-owned subsidiary Mint Middle East LLC (“MME”).
Mint Corporation provides employers with automated payroll services and a proprietary Automated Teller Machine (ATM) network for unbanked employees in the United Arab Emirates (UAE). Mint Middle East 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.
Why is this announcement important?
Mint Corporation expects that the launch of the mobile application will expand Mint’s business from its traditional payroll services to a full suite of mobile-enabled fintech services, which will give the Company the opportunity to significantly increase its revenue per cardholder. Services within the app include:
Mobile top-ups: A large population in the UAE that would have needed to go to a retailer for adding mobile credits can now get it done in-app through Mint.
Account management services: Just like a chequing account, the cardholders can view their balances and transaction history through the app.
Multiple cards loaded onto the mobile app: Mint’s app users have the option to add multiple cards in addition to their payroll card (MasterCard / UnionPay Card) loaded onto their app, such as gift cards from participating merchants, comparable to how some of the major financial and technology institutions offer their clients.
The app launch enforces Mint’s continued commitment to financially empower the underbanked segments to transact in a digital payments’ world. Adoption is expected to be smooth with the rapid adoption of smartphones coupled with plummeting costs of data in the region. The app will allow Mint to cross-sell a wide range of financial products and services in conjunction with its banking and remittance partners.
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.
Shares of The Mint Corporation (TSXV:MIT) climbed 10% to $0.22 on Thursday following the announcement.
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