- Fintech Ecosystem Development seeks to offer a diverse portfolio of fintech-related products and services to consumers and businesses in Europe, South Asia, East Asia, Latin America, Africa, and the United States
- The company is looking to participate in the growing cashless payments space, where global payment transaction volumes are set to increase by almost 300% by 2030
- FEXD intends to acquire or merge with pioneering fintech companies with, among others, a large customer base and the potential to be scaled up to global markets
- By executing its growth strategy, the company looks to equip cashless societies with scalable access to payment technologies and solutions
Consumers around the world were embracing cashless payments even before the COVID-19 pandemic broke out, from tapping a sales terminal with a mobile phone in the U.S. to making QR code payments in China. As a result, professional services multinational PWC writes in a report that this shift from cash payments “might ultimately lead to a cashless global society.” In fact, their analysis shows that the global cashless payment volumes are set to increase from about 1 trillion transactions in 2020 to almost 1.9 trillion in 2025, representing a jump of over 80%. By 2030, it is anticipated that the volume will have shot up to almost 3 trillion, a three-fold increase (https://ibn.fm/KdEgh).
Emerging markets in the Asia-Pacific region and Africa are set to witness the fastest growth. “Asia-Pacific will grow fastest, with cashless transaction volume growing by 109% until 2025 and then by 76% from 2025 to 2030, followed by Africa (78%, 64%) and Europe (64%, 39%),” the report continues. These projections align with the most recent data from Southeast Asia compiled by the Thai office of multinational VISA Inc. (NYSE: V) (https://ibn.fm/NEDBf). Here, according to VISA, “93% of consumers use a multitude of cashless payment methods including cards, contactless cards and mobile contactless, mobile wallets, and QR code payments.”
Fintech Ecosystem Development (NASDAQ: FEXD), a company looking to develop a global financial technology ecosystem, with plans to offer a diverse portfolio of fintech-related products and services to consumers and businesses in Europe, South Asia, East Asia, Latin America, Africa, and the United States, is eyeing a share of this growth.
“We are seeking to acquire and merge with high growth global fintech acquisition targets primarily operating in South Asia with a high volume of customers and large network of agents. The target companies we plan to acquire and merge with are expected to help us grow to $1 billion and more in annual revenues, as part of the global fintech ecosystem we are developing,” reads FEXD’s website (https://ibn.fm/Fhlyh).
Strategic in its approach, FEXD is targeting country-based fintech pioneers with the potential to be scaled up to global markets; a shared interest in making an impact by taking mobile transaction services to largely underserved markets; attractive valuation; growth-oriented management; as well as fintech service providers that will benefit from integrating more advanced technologies and fintech companies with a large existing customer base.
According to consultancy firm Bain & Company, companies with some of the characteristics FEXD has identified represent the biggest opportunities for dealmakers. In a report discussing the areas where the bulk of dealmaking has shifted, Bain notes that target companies with, among others, cross-border payments capabilities and those whose payments capabilities can be integrated into software offerings are drawing the greatest level of interest (https://ibn.fm/ZTJjD).
So far, the company has entered into a business combination agreement with Mobitech International LLC (dba Afinoz), a limited liability company organized in the United Arab Emirates, pursuant to which FEXD will purchase Afinoz. Afinoz is an artificial intelligence-enabled digital lending platform used by India’s leading banks, non-banking financial companies, and fintech loan providers. The acquisition is, however, yet to be completed. Still, Dr. Saiful Khandaker, FEXD CEO, President, and Founder, is confident about the positive impact of such acquisitions on the company’s operations.
“These acquisitions give us a solid competitive position in the emerging Fintech 3.0 global markets and allow us to provide neo-banking services in the U.S., Mexico, Brazil, and India, with opportunities to expand our services to other countries in South and East Asia and Latin America,” said Dr. Saiful in a September 2022 press release announcing the business combination agreement (https://ibn.fm/yIFq6). “We aim to use emerging technologies such as blockchain, Web 3.0, Metaverse, and artificial intelligence to reduce costs and accelerate the processing of money transfers, loans, and other lifestyle services, which will benefit consumers and businesses in many countries.”
Through its growth strategy, centered around M&A, FEXD is looking to equip markets with scalable access to cashless payment technologies and solutions, contributing to and participating in the growth of cashless societies.
For more information, visit the company’s website at www.FintechEcoSys.com.
NOTE TO INVESTORS: The latest news and updates relating to FEXD are available in the company’s newsroom at https://ibn.fm/FEXD
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