Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 2

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 2
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 had processed over 19 billion transactions worth $52.4 trillion, showing an 8% growth
compared to 20222. Between 2018 and 2021, the dollar value of ACH payments grew at an annual rate of 12.7%, the highest growth
rate recorded by the Federal Reserve Payments Study3. This continued growth of ACH payments is primarily driven by high-value
transactions, subscription-based businesses, and e-commerce, all of which require efficient and low-cost payment systems to handle recurring
transactions.

Card payment processing remain a dominant force in
the global transaction landscape, with both general-purpose and private-label cards leading the charge. In 2022, the Federal Reserve Payments
Study highlighted the large volume of card payments, underscoring their significant role in consumer transactions. By 2023, card payments
continued to be the most widely used payment method, both for consumer and business transactions. This market continues to evolve, driven
by the growing demand for contactless and instant payment methods, which are pushing the adoption of card-based payments on a global scale.

The fintech sector is expanding rapidly, spurred by
technological advancements and regulatory changes. Between 2024 and 2032, the fintech industry is projected to grow at a compound annual
growth rate (CAGR) of 16.5%4. Within this sector, digital banking—including FDIC-insured neobanks offering banking-as-a-service—is
expected to reach a value of $2.6 trillion by 2027, with over 78 million users. Neobanks are disrupting traditional banking models by
providing digital-first financial services, often lowering costs and enhancing the customer experience. This growth is expected to continue,
especially among younger, tech-savvy consumers.

Small credit unions are increasingly adopting digital
payment solutions to meet the changing demands of consumers. As of mid-2024, 11% of credit unions have incorporated open banking payment
options, signaling a growing trend toward advanced payment solutions5. Digital transformation is enabling credit unions to
attract and retain members by offering secure and convenient digital payment services6. To remain competitive in the rapidly
evolving financial landscape, many small credit unions are forging partnerships with fintech companies to enhance their digital payment
offerings.

The digital payments ecosystem presents significant
revenue opportunities, especially through mobile wallets and ACH systems. PwC’s consumer research estimates a revenue opportunity
of $60 billion for digital payment ecosystems⁶. As