- Mobile payment services are taking off in Asia, and Indonesia is an overlooked market despite being 4th largest population in the world.
- KPAY capitalizing on this boom with prolific user growth and revenue taking off; one-month revenue surpassed entire previous quarter, and it just became a unique play on BTC.
China’s digital-payments market is exploding, far and away the world’s largest with $9 trillion in mobile payments in 2016, according to firm iResearch. It's no wonder that this has been such a hugely profitable industry for the current dominants, online retailer giant Alibaba Group's (NYSE:BABA) Alipay, and more recently Tencent Holdings' (HKG:0700) Tenpay.
U.S. investors have been slower to catch on to this emerging business, but that's quickly changing. The multi-billion-dollar digital payments market has already created numerous billionaires here in North America (think Elon Musk), and Asia is the new belle of the ball which makes KinerjaPay (OTCQB:KPAY) an extremely attractive opportunity in this blossoming market with multiples of possible upside.
Huge Potential, Untapped Market
When Alipay emerged on the Chinese market with its mobile app pay features, it was an instant success. It was responsible for a massive $1.7 tln in total payments last year in China, thanks to over 520 mln active users and over 10 mln brick-and-mortar merchants accepting Alipay in China.
Mobile payment technology is one of the fastest-growing industries in the world. But mobile payments have not taken off in the U.S. in the same way that they have in Asia. The $9 tln in mobile payments executed last year in China is about 90 times the size of the U.S. mobile payments space- just $112 bln.
In many emerging parts of Asia, few consumers have credit or debit cards, and most merchants lack the point-of-sale payment processing equipment needed to process payments from Alphabet Inc.’s (NASDAQ:GOOGL) Android Pay or Apple Inc.’s (NASDAQ:AAPL) Apple Pay. As a result, Asia is increasingly moving from cash to smartphone apps for buying goods and transferring money between individuals, and the market in emerging Asian countries is enormous and growing.
Could This Be The Indonesian Paypal?
Indonesia is the world's fourth-most populous country, with a population of 260 million people, and is becoming the major economic power in the Southeast Asian region. As in many emerging markets, cheap smartphones are broadening internet access and unlocking ecommerce for this young population - half of Indonesia's population are under the age of 30 and extremely receptive to new technology.
This is why Kinerja Pay (OTCMKTS:KPAY) is such an attractive investment. The company started serving Indonesia with their mobile payment system KinerjaPay last year, and user growth has recently started to go parabolic. They're growing rapidly as the nascent young population looks for new and easy ways to handle their money, and typical Western approachs are not accessible.
KinerjaPay enables users to pay and buy through their mobile application and web portal. This is critical as the platform includes an ecommerce component for shopping online, and can perform other payment services such as credit card payments, bill payment, and direct transfer to anyone with KinerjaPay. KPAY books revenue from transaction fees, small amounts that quickly add up.
KPAY's rise is exactly how PayPal (NASDAQ: PYPL) stormed the U.S. twenty years ago before being bought by Ebay, and more recently, Bitcoin has grabbed the attention of Wall Streeters. Just look at Square (NYSE: SQ) which is now worth $11 bln as investors bet on the future of digital payments in the U.S. PayPal CEO Dan Schulman told TheStreet.com recently that "digital payments is in its infancy right now, and what I think the market is looking for are pure plays in what is unfolding in the future."
Pure-Play Digital Payments Company KPAY Could Justify BTC-Like Returns
KPAY is bringing on new users at record pace, reporting last month that August transaction volume of 200,000 marked a 185% increase over the entire second quarter! It's all about increasing consumer awareness of the KinerjaPay platform this summer, and new users have piled in.
The company's monthly revenue have already surpassed their qaurterly revenue in the last six months! Averaging 6,442 transactions per day, the company recorded $923K in transaction revenue that month, compared to $387K for the month of July. They doubled their transaction volume but nearly tripled their transaction revenue, a good sign that the technology is catching on in Indonesia.
Just look at what's going on with GlancePay (OTC:GLNNF) (CSE:GET), a budding mobile payment platform in Canada that has seen its share price rise 371% since May as traders have caught on to the potential of this industry. Smart money is flowing into mobile payments, and KPAY is a pure-play on the huge Asian opportunity.
It's technologies with user-growth and revenue-growth like these that can rapidly go from undiscovered to mainstream names, potentially becoming the PayPals and Squares of tomorrow. KPAY has built relationships with key services and businesses in Indonesia, like the leading convenience store chains Indomaret and Alfamart, and Pegadaian, the country's largest provider of credit and loans. And the company attracted the expertise of former Vice Chairman of the NASDAQ, David Weild, who just joined their advisory board. This May, CEO Edwin Ng bought stock on the open market, a tell-tale sign in the securities industry.
Digital currencies are catching the eyes of reputable money as they've gained mainstream attention and developed a better reputation. With a shift to focus on digital currencies, Bioptix, Inc. (NASDAQ:BIOP), for instance, rallied from $3.50 to $8.18 in weeks, a 134% gain based on the enormous potential of new and established cryptocurrencies.
Remarkably, the platform now offers bitcoin owners the opportunity to use the digital currency on the established KinerjaPay ecommerce platform, one of the few ways the cryptocurrencies can be used efficiently in the region. Here's what's really crazy - China recently cracked down on Bitcoin and cryptocurrencies, even going so far as to shut down exchanges in the region. BTC China, one of the country’s largest cryptocurrency venues, said it would stop handling trades by the end of September. KPAY now has one of just a few ways to cash out of the currency, meaning that speculators may wind up flocking to KPAY simply because it gives them a way out.
It's quickly becoming clear why Ng put his money where his mouth is - KPAY user growth has gone parabolic in the last few months and revenue is growing significantly. Both could justify multiples of upside if execution continues, and we could soon see KPAY replicate GLNNF's success with hundreds of percent of upside.
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