- Peppermint Innovation’s (PIL) share price soared 22 per cent yesterday as the market switched on to the potential of the fast-growing, largely untapped buy now, pay later (BNPL) market in Asia
- Investors stood by and watched this BNPL contender soar from 2.85 cents per share to a lofty high of 3.3 cents at market close on Monday
- Peppermint has all the capability, market potential and key relationships to become the Afterpay (APT) of Asia, offering an end-to-end non-banking ecosystem for the unbanked and excluded in the South East Asian market
- Investors need only look to the success of fellow ASX-lister IOU Pay (IOU) to see the potential of this $27.23 billion market and the upside of this nimble market challenger
Peppermint Innovation’s (PIL) share price soared 22 per cent yesterday as the market switched on to the potential of the fast-growing, largely untapped buy now, pay later (BNPL) market in Asia.
Investors appear to have made the connection that this company shares the characteristics of some of the few successful buy now, pay later players which came before it, and didn’t want to be late to the party.
Opening the day at 2.85 cents, buyers piled in to push up the stock to a lofty high of 3.3 cents — an impressive start for a company that only returned to listing on the ASX less than a month ago.
A fresh market player
First and foremost, Peppermint is a non-banking, purpose-built mobile remittance, bill payments and eLoad platform that allows agents to effectively launch their very own mobile-based business.
The agent model is unique to Peppermint and offers fast, low-cost and low-risk distribution, which is vital in an emerging market.
More broadly, however, it could be the Afterpay (APT) of Asia, allowing financial inclusion for the largely unbanked and excluded population of the Philippines.
Peppermint reports 90 per cent of Filipinos have no credit score, and 36 per cent of its municipalities have no access to banking facilities.
Enter Peppermint Innovation.
Source: Business News
Under the brand Bizmoto, this nimble player offers an end-to-end ecosystem that provides non-banking financial solutions in a market tipped to be worth $920 billion and growing.
Peppermint Innovation has an in-house network and distribution channel with over 51,438 registered agents that deliver its all-encompassing Bizmoto services, including mobile banking, mobile eLoad, bill and product payment and money transfers.
These agents have hit the ground running and generated over 1.5 million transactions and $2.8 million in cash receipts over FY20.
The company also estimates its agent network will grow upwards of 150,000 within 12 months.
More broadly, Peppermint’s offerings are available to those typically excluded from standard BNPL services, offering financial inclusivity.
In addition, this multi-faceted player has also entered the lucrative on-demand delivery and logistics market through bizmoGO — not only providing a service of convenience, but allowing individuals to effectively set up their own delivery business. In time, qualified riders will also be provided with financing to purchase the motorcycle for their business.
It’s a branch that’s quickly gained traction: launching in April 2019 with just 20 riders, it now touts 590 registered riders, all signed within the first 12 months, with food delivery being the most popular service to date.
This isn’t just another market darling with a story to tell: Peppermint has proven technology and proven engagement.
So, what next?
The eCommerce market in the Philippines is predicted to grow to $27.23 billion in 2025, with the consumer finance market valued at $40.72 billion and growing roughly 17 per cent annually. It’s clear that this is a market investors won’t want to miss out on.
If investors dare to dream and if Peppermint can continue on this upwards trajectory, it has all the key relationships, components and capabilities to evolve like fellow ASX-lister IOU Pay (IOU).
This BNPL player brought its own success to the table, touting a share price explosion from the start of February when it sat at 16 cents per share — two weeks later, it topped 70 cents.
Innovation is difficult, but when you have a proven offer with proven traction, the chances of success are certainly higher — meaning Peppermint is one to watch.