Ann: Quarterly Report and 4C, page-41

While I don't think we should simply assume the outcome in relation to PIL's final application for Peppermint Finance Inc. with the Philippines Securites Exchange Commission (which will pave the way for bizmoPay operations), it's plain the Company has demonstrated over years it's bona fides as a good corporate citizen, and forged strong relationships with regulatory authorities such as the Central Bank of the Philippines, the BSP, - indeeed, acting as a member on the National Committee for Financial Inclusion.

You catch a flavour of the thought and time that's been put in by the Company in this area from Chris Kain's interview with the StockDoc earlier this year:

Dr Nigel Finch: Look, for those that aren’t across it, I think these emerging markets offer very, very interesting opportunities. The BSP, the Philippine central bank, has been fairly progressive in adopting technology innovations. What can you share with us about your observations about innovation in financial products and services in this market?

Peppermint CEO, Chris Kain: We have a very strong relationship with the Central Bank of the Philippines, or the BSP, as you rightly refer to them. And that has been born over many, many years of operating in the banking sector with our mobile banking platform.

But they are progressive in their way of trying to create financial inclusion, and deliver financial services to the people of the Philippines. We are a member of the National Committee for Financial Inclusion and we do participate in those discussions and how we can bring people, effectively into line with what the BSP policies and procedures are.

And the reason the BSP like to embrace and encourage platforms such as ours, even though they're referred to as non-bank platforms is that our platforms are built to BSP standards. So for instance, a transaction history: there's a seven year history for every transaction that goes over our platform.

So what this means is that by the BSP embracing and promoting these non-bank platforms, it means that they're getting visibility into transactions outside of the banking sector that otherwise they wouldn't have had. So, that black market that existed is coming into visibility for the BSP.

The other thing they’re very progressive in is working with the banks, and even the smaller banks, the regional and rural banks, and understanding that if they're going to run a mobile banking platform, they potentially don't have the resources to run huge hardstand server rooms and so forth.

So the BSP has adopted a policy that allows these banks to run cloud-based server platforms. And we've been at the forefront of encouraging that, and indeed, with our work with Banknet as their preferred technology provider (and Banknet are the ATM switch in the Philippines – they provide the ATM switching services to a number of banks) we have been able to develop a cloud-based mobile banking platform for these smaller regional and rural banks that allows these regional and rural banks to abide by BSP mandates that apply to the whole of the banking sector.

On top of that, also the BSP has been very embracing of virtual currency exchanges and digital currencies. There is a process you can go through to receive your virtual currency exchange licence, and it’s something that we've explored and is on the radar, but down the track.

Because they are embracing the innovation across, I suppose you'd say, define it, the world financial industry in the ways that you pay for things, in the ways that people interact,and so forth and so on. So I'd suggest that yeah, I think they are a very progressive organisation.

We have a very good relationship with them. And indeed, we do our best to ensure that we help with the rollout of their ultimate aim of trying to create financial inclusion for the people of the Philippines.

I'd have to say, without being presumptuous, I'm extremely optimistic of SEC approval for Peppermint Finance Inc.