First Global Provides Update on Fintech Remittance Business Model

First Global Data (TSXV:FGD) has stated it would like to elaborate on its recent deal with LianLian Pay.

As quoted in the press release:

We believe this is the world’s first social messaging multi integrated remittance platform whereby SOCIAL converges on FINTECH in the flow of cross border money.

Marketing: LianLian is committing millions of dollars in the initial phase.

Aside, from LianLian’s 100 million users for remittance penetration, there will be significant E-commerce revenue opportunities for businesses buying from China and utilizing the interconnected FINTECH environment created within the WeChat messaging app.

It is estimated that the average remittance amount from North America to China is $2500 per month as outbound remittance.

There is a revenue share consideration with LianLian for the estimated 1% foreign exchange spread on the $2500 per month average remittance, in addition to a shared remittance fee per transaction.

The goal is to ramp up to a 1% penetration factor of the 100 million registered users in an accelerated sales cycle.

The potential revenue numerics based on marketing initiatives are considerable, however the Company is not in a position to publish forward looking sales thresholds but is relying on hypothetical considerations based on marketing and conversion efforts.

Andre Itwaru, the Company’s Chairman and CEO comments, “the recently announced deal with LianLian’s 100 million plus registered users and the leveraging of the WeChat platform for international remittance is a game changer for First Global. As investors are aware, it is difficult to quantify the value of a deal of this magnitude. It is our measured opinion this deal sets the stage for turbo charged revenue growth. We continue to accelerate our licensing issuance in the US so we may capitalize on numerous presented opportunities.”

As quoted in the press release.

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