Fobi announces acquisition of PassWallet, a leading android wallet pass issuer
By Edlyn Cardoza
Fobi AI Inc., a leader in providing real-time data analytics through artificial intelligence to drive customer activation and engagement, recently announced that the Company has signed an Agreement on October 5th, 2021, to acquire PassWallet, a leading app (by Google Play Store downloads) for managing and utilizing Wallet passes on Android phones. PassWallet works with other leading Wallet pass companies and supports more than 150 countries where Google Pay is not supported.
Rob Anson, Fobi CEO, stated: “This represents a key achievement for Fobi and its shareholders. This acquisition of PassWallet positions Fobi as an up and coming leader in the digital wallet space. The company has made great strides this year and this key strategic development positions us extremely well, enabling us to leverage and monetize on a standard ARPU model (average revenue per user). With over 6 million downloads currently, management believes that by leveraging our artificial intelligence and data solutions as well as the integration of Fobi’s marketing power together with the global wallet pass growth rates, that this number will grow significantly in 2022. Coupled with further untapped opportunity and an addressable market of over 150 countries that are currently not serviced by Google Pay, management anticipates that with this acquisition Fobi is now well positioned to expand into the FinTech space.”
TERMS OF THE TRANSACTION:
In consideration for the acquisition of PassWallet, Fobi will pay €888,000 consisting of:
(i) €355,200 paid in cash;
(ii) (ii) €532,800 in common shares of Fobi (each a “Fobi Share”) calculated by dividing €532,800 converted into Canadian funds using the Bank of Canada monthly exchange rate for the calendar month of September 2021 by the ten trading day volume-weighted average price of the Fobi Shares on the TSX Venture Exchange (the “TSXV”) for the period ended five TSXV trading days before the date of closing of the Transaction. Any Fobi Shares issued in connection with the Transaction will be subject to a restricted period of four months and one day from the date of issuance. There are no finder’s fees or long term debt associated with this agreement.
The closing of the Transaction is subject to and will occur following receipt of TSXV approval.
Moreover, and perhaps more importantly, the global mobile wallet market addressed by PassWallet is forecasted to achieve significant growth in the coming years due to the growing popularity of mobile wallet payments and applications across multiple industry verticals. A recent report from Research Dive estimates the Global Mobile Wallet Market will grow from $11 billion in 2020 to $46 billion by 2028, representing a staggering CAGR of 18.9% for an industry already in the billions and a significant growth opportunity for Fobi.
This incredible growth is being driven by the rapidly increasing popularity of mobile wallet payments in developed economies and the ability of Wallet pass-based companies to service “unbanked” customers (those who have smaller bank balances or no bank account at all). In a recent report by Ark-Invest on Wallet Pass companies, they noted that the average customer acquisition cost for the major banks in the US was $925, whereas the customer acquisition cost for Square was just $20, driving Square to start targeting unbanked customers based on Reports that Square’s Cash App was especially popular in locations where unbanked rates are high.
Combining the acquisition of PassWallet with the global strategic partnerships and alliances already announced by Fobi to date, the Company has an opportunity to pursue the unbanked digital wallet opportunity with some of the top payment companies in the world.
Fobi SVP of Corporate Strategy & Corporate Development Richard Lee stated, “This acquisition opens yet another new vertical for the organization, and I am extremely proud of the relentless efforts of the team which is one of my primary reasons for joining Fobi. PassWallet will be complementary to many of Fobi’s existing services and will significantly enhance our ability to drive even more engagement with consumers. With this acquisition, it will provide Fobi with greater opportunities and applications leveraging the mobile wallet, including entry into additional markets at an even faster pace. We are truly building something special here.”
IBSi Daily News Analysis
August 12, 2022
The Weekly Wrap: all you need to know by Friday COB | August 12thRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage