Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 182

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 182
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While we believe the IPSIPay
Express opportunity has great promise, as of the date of this report, IPEX has not been launched and we have derived no revenue or cash
distributions from IPSIPay Express. We expect that revenue will be generated by IPSIPay Express through fees derived from merchant processing
fees, money transfer fees, and commissions on international bill payment processing. To date, our activities related to IPSIPay Express
have included the following:

    ●
    Securing Banking Relationships. To engage in traditional credit card processing or the proposed IPEX account-to-account payment solution, it is necessary to work with qualified banking institutions through which transactions are processed. As of the date of this Report, such relationships are not  in place.

    ●
    Assisting with Payment Logistics. We have been working with our IPSIPay Express joint venture partners to establish the systems and technology necessary to effectuate payments through IPEX. As of the date of this Report, the establishment of such systems and technology is still ongoing, which is the primary reason why IPEX has not been commercially launched to date.

    ●
    Securing Customers. Our management has also been working to secure potential customers for IPEX. These customers would include gaming and entertainment businesses.

No assurances can be given
that IPSIPay Express will be successfully launched or will generate revenues or otherwise have a positive impact on our results of operations.
We believe IPSIPay Express could be commercially launched and generate initial revenues during the current fiscal year, but no assurances
can be provided that this will be achieved or that (i) we will be able to raise funds satisfactory to fulfill all of our capital contributions
to IPSIPay Express or (ii) that we will ever receive distributions of free cash flow from IPSIPay Express. Moreover, the IPSIPay Express
product offering will be targeting so-called “high risk” sectors such as online gaming and entertainment, which also carries
certain risks.

Inflation

Macro-economic conditions
could affect consumer spending adversely and consequently our future operations when we fully launch our e-wallet products commercially.
The U.S. has entered a period of significant inflation, and this may impact consumer’s desire to adopt our products and services
and may increase our costs overall. However, as of the date of this report, we do not expect there to be any material impact on our liquidity
as forecast in our business plan due to recent inflationary concerns in the U.S.