Mobile Payment Systems Market Benefits From Innovation of Technology

NEW YORK, November 9, 2017 /PRNewswire/ --

According to the data provided by Statista Inc., worldwide mobile payment systems market is predicted to surpass $1 trillion in U.S. dollars by 2019, compared to $450 billion U.S. dollars from 2015. The increasing use of mobile devices such as smartphones and tablets have led to an incredible growth of mobile commerce. Last year's fourth quarter of mobile e-commerce spending in the U.S. reported at a total of $22.7 billion U.S. dollars. Strong drivers that account for the growth of these systems also include the increasing use of mobile consumer spending on digital content such as apps, mobile games, and event tickets. Mogo Finance Technology Inc (OTC: MOGOF), PayPal Holdings Inc. (NASDAQ: PYPL), Square, Inc. (NYSE: SQ), Verifone Systems Inc. (NYSE: PAY), Visa Inc. (NYSE: V)

Shopping on mobile devices has become a common trend as the use of payment methods are processed through Near-Field Communication (NFC) technologies to scan digital wallets. A report published by Credence Research says that, "Innovations in mobiles have drastically transformed the lives of the persons around the globe. Since last few years, mobile equipment are available with multiple features and functions. Mobiles now have become comprehensive electronic (digital) equipment. Due to this the incorporation of financial services (and transactions) with mobile equipment complemented with inexpensive internet connectivity is mainly responsible for changing the use of mobile equipment solely from a communicating device to a money transferring equipment."

Mogo Finance Technology Inc (OTCQX: MOGOF) also listed on the TSX Exchange under the ticker symbol "MOGO". Just announced breaking news after the market close yesterday that, "one of Canada's leading financial technology companies, today announced its financial and operational results for the third quarter ended September 30, 2017.

"The third quarter represented an important inflection point for Mogo as we delivered more than 60% growth in other product revenue and fees, which highlights the power of Mogo's digital platform," said David Feller, Mogo's Founder and CEO. "As banking continues to undergo a digital transformation, in our view the next generation of consumers will want and expect multiple products in one seamless mobile account. We've invested more than $150 million building what we believe is the leading mobile-first digital banking experience in Canada - supported by a member base of more than 500,000, a brand that is increasingly recognized and trusted, and a 250-person FinTech team. Now we are ideally positioned to further monetize this platform by launching new products that add value to our members while creating additional revenue streams for Mogo. We have several new products on our near-term roadmap, including MogoProtect, an identify fraud protection product, along with the recently announced crypto account, which will give Canadians a simple and trusted way to buy and sell Bitcoin within their MogoAccount. It's clear that Bitcoin is going mainstream and increasingly viewed as the new digital gold. This will be the first of multiple products based around Bitcoin and blockchain technology."

"We delivered accelerating sequential revenue growth in Q3 led by a strong increase in other product revenue and fees, which are now 30% of our total revenue and approaching our target of 50% of revenue by the end of 2018," said Greg Feller, President & CFO. "Our third-quarter results were also highlighted by record gross profit margin of 68%, up almost 800 basis points over last year, and quarterly adjusted EBITDA of $1.0 million, an increase of 96% over last year. Looking ahead, we expect our high-margin, fee-based revenue to be the main driver of overall revenue growth."

Third Quarter 2017 Financial Highlights: Other product revenue and fees rose 61% year over year driven by increased adoption of new products and services, and now represent 30% of the Company's total revenue.

Total revenue in Q3 2017 was $12.6 million, up by 10% over Q2 2017 driven primarily by the growth of other product revenue and fees and loan interest. Gross profit margin increased to a record 68% of revenue, compared with 60% in the third quarter of 2016. The increase was driven by the growth of higher-margin fee-based products and strong credit performance.

Charge-off rate1 improved for the fourth consecutive quarter to a record low of 15%, compared with 23% in the same period last year. Adjusted EBITDA1 increased 96% year over year to $1.0 million in the third quarter of 2017. This is the fifth consecutive quarter of positive adjusted EBITDA.

Third Quarter 2017 Business Highlights

Mogo announced it added dedicated blockchain capabilities to accelerate its plans to integrate Bitcoin and other cryptocurrencies into the MogoAccount.

Added 53,000 new members in Q3 2017, a 23% increase over the new member additions in Q2 2017. In November 2017, the Company announced that it surpassed 500,000 members.

Expanded into New Brunswick, Newfoundland, and Pince Edward Island. Subsequent to quarter end, expanded into Manitoba. Ongoing enhancements to mobile-first digital account and user experience with continued focus on making it easier for consumers to manage their financial health. Expanded lender relationships to enhance product selection for MogoMortgage customers.

Outlook - The Company expects continued growth in other product revenue and fees and is targeting for this segment to represent at least 50% of total revenue by end of 2018. The Company expects continued strong member growth and is now targeting to reach 800,000 - 1,000,000 members by the end of 2018."

PayPal Holdings Inc. (NASDAQ: PYPL) is a leading technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The company provides safer and simpler ways for businesses of all sizes to accept payments from merchant websites, mobile devices and applications, and at offline retail locations through a wide range of payment solutions across its Payments Platform, including PayPal, PayPal Credit, Venmo and Braintree products. On October 19, 2017, the company announced third quarter results for the period ended September 30, 2017. Revenue growth of 21% to $3.239 billion, or 22% on a foreign currency neutral (FX-neutral) basis. In the third quarter, PayPal closed the acquisition of Swift Financial, a leading provider of working capital solutions to small businesses in the U.S. The previously announced acquisition of TIO Networks also closed during the quarter.


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. On September 28, 2017, the company announced a strategic partnership with Eventbrite, in which Square will drive Eventbrite's payments systems, including online, mobile, and in-person transactions. Additionally, to support Eventbrite's vision to power the world's largest platform for live experiences, Square has invested $25 million in the company. "Eventbrite's global network of event creators have the same entrepreneurial spirit and drive as the millions of sellers who run their businesses on Square," said Alyssa Henry, Seller Lead at Square. "We're thrilled to bring Square's payments technology to Eventbrite. As the lines that separate online and offline business fade, we look forward to helping them further simplify all aspects of commerce, so they can stay focused on their core business of powering great live events."

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. The company is connecting more products to an integrated solutions platform to better meet the evolving needs of its clients and partners. Recently, the company announced that it is implementing Mastercard's M/Chip Fast technology across the Verifone next generation and heritage payment solution lines. Whether it's insert or tap to pay, North American merchants will be able to provide their customers with speeds similar to those associated with magnetic stripe transactions along with EMV security. M/Chip Fast is designed for grocery, retail, fast food, and hospitality environments where speed and convenience are critical. It facilitates EMV transactions consistent with those offered globally by Mastercard; however, payments are authenticated in one step, instead of two. This means consumers no longer have to wait for the full round-trip authorization to return to the card. 

Visa Inc. (NYSE: V) is the world's leader in digital payments. Recently, the company introduced three commercially available wearable payment devices. In the spirit of the Olympic Winter Games, Visa created NFC-enabled payment gloves, commemorative stickers and Olympic pins that allow fans and athletes to complete seamless and secure payments with a simple tap at any contactless-enabled terminal. Visa teamed up with Lotte Card, the financial arm of South Korean-based retail giant, Lotte Department Store, to produce and make these new prepaid payment wearables available for purchase in Korea beginning November 9.

Please SIGN UP NOW at http://www.FinancialBuzz.com To Receive Alerts on Trending Financial News from all these companies. "The Latest Buzz in Financial News"

Subscribe Now! Watch us report from NYSE https://www.youtube.com/FinancialBuzzMedia

Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz

Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz

Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/

About FinancialBuzz.com 

FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the 'Site') is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For this release, FinancialBuzz.com has been compensated five thousand dollars for financial news dissemination and pr services by mogo finance technology inc. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use. Please visit: http://www.financialbuzz.com.

Media Contact:
[email protected]
+1-877-601-1879

Url: www.FinancialBuzz.com

SOURCE FinancialBuzz.com

[ Back To TMCnet.com's Homepage ]