RYVYL Licenses its Payment Platform as a Service (“PPaaS”) to a U.S. National Payment Processor
August 08 2024 - 7:00AM
RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a leading
innovator of payment transaction solutions leveraging proprietary
blockchain ledger and electronic payment technology for diverse
international markets, licensed its payment-platform-as-a-service
to a U.S. based Licensee that will deploy services nationwide for
both Card Present (CP) and Card not present (CNP) transactions.
Under the licensing model, RYVYL will earn revenue per transaction.
“Leveraging our core technology to build a new
high margin revenue stream, we signed an exclusive U.S. license of
our private label PPaaS platform, for a niche industry customer
base,” said RYVYL Co-founder and CEO Fredi Nisan. “In the third
quarter of 2024, we delivered a private label Instance of the
product, which the licensing partner will complete API integration
to its banking network by the end of Q3 and should start
contributing revenue by Q4. We expect it will take time to ramp up
transactions as the licensee begins to onboard their available
portfolio of more than 1,000 merchants.”
At the peak, RYVYL previously processed more
than a million transactions per month across its network for this
vertical. While per transaction fees will be lower than those on
processing volume, the company will save onboarding costs, reduce
operational expense, streamline overall compliance, and eliminate
payment network processing costs of revenue, thus contributing
towards improving the overall company gross margin. Going forward
the company will track licensing transactions separately as opposed
to processing volumes for this new licensing revenue category.
Christian Murray, managing Director, and
President of Northeast Merchant Systems (NEMS) stated, “In
addition, we expect our licensee, with its unique footprint
combined with the PPaaS solution, to be able to address U.S. market
with redundant processing and banking connectivity within market.
In addition, the utilization of the platform will benefit both
businesses and consumers from touchless payments utilizing
smartphones, multi-factor authentication, frictionless QR code
payments all while streamlining the checkout process and
maintaining a traditional payment experience. This would position
both our licensee to earn additional revenue streams and RYVYL to
increase licensing and other platform fees. Further, with the
partnership, we will benefit from deploying reduced marketing,
sales and support resources and drive revenues through the licensee
with its access to a large network of locations and customers in
North America.”
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a
passion for empowering a new way to conduct business-to-business,
consumer-to-business, and peer-to-peer payment transactions around
the globe. By leveraging proprietary blockchain ledger and
electronic token technology for the diverse international markets,
RYVYL is a leading innovator of payment transaction solutions
reinventing the future of financial transactions. Since its
founding as GreenBox POS in 2017 in San Diego, RYVYL has developed
applications enabling an end-to-end suite of turnkey financial
products with enhanced security and data privacy, world-class
identity theft protection, and rapid speed to settlement. As a
result, the platform can log immense volumes of immutable
transactional records at the speed of the internet for first-tier
partners, merchants, and consumers around the globe.
www.ryvyl.com
Cautionary Note Regarding Forward-Looking
Statements
This press release includes information that
constitutes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on the Company’s current
beliefs, assumptions, and expectations regarding future events,
which in turn are based on information currently available to the
Company. Such forward-looking statements include statements
regarding the timing and expectation of revenues from the license
described herein and are characterized by future or conditional
words such as "may," "will," "expect," "intend," "anticipate,"
“believe," "estimate" and "continue" or similar words. You should
read statements that contain these words carefully because they
discuss future expectations and plans, which contain projections of
future results of operations or financial condition or state other
forward-looking information.
By their nature, forward-looking statements
address matters that are subject to risks and uncertainties. A
variety of factors could cause actual events and results to differ
materially from those expressed in or contemplated by the
forward-looking statements, including the risk that the licensee
understands and complies with various banking laws and regulations
that may impact the licensee’s ability to process transactions. For
example, federal money laundering statutes and Bank Secrecy Act
regulations discourage financial institutions from working with
operators of certain industries – particularly industries with
heightened cash reporting obligations and restrictions – as a
result of which, banks may refuse to process certain payments
and/or require onerous reporting obligations by payment processors
to avoid compliance risk. These and other risk factors affecting
the Company are discussed in detail in the Company’s periodic
filings with the SEC. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether
because of the latest information, future events or otherwise,
except to the extent required by applicable laws.
IR Contact: David Barnard, LHA Investor
Relations, 415-433-3777, RYVYL@lhai.com
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