Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 16

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 16
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 could in turn harm our business, results of operations, or financial condition.

10

We are subject
to economic risks that could impact the overall level of consumer spending.

The payment services
industry depends heavily on the overall level of consumer spending. We are exposed to general economic conditions that affect consumer
confidence, consumer spending, consumer discretionary income or changes in consumer purchasing habits. Economic factors such as employment
levels, business conditions, energy and fuel costs, interest rates, and inflation rate could reduce consumer spending or change consumer
purchasing habits. A reduction in the amount of consumer spending could result in a decrease in our prospects for revenue and profits.
If users of our products and services spend or remit less money per transaction, we will have fewer transactions to process at lower
amounts, resulting in lower revenue.

If consumer confidence
in our business deteriorates, our business, financial condition and results of operations could be adversely affected.

Our business is built
on consumers’ confidence in our brands, as well as our ability to provide fast, reliable payment services. As a consumer business,
the strength of our brand and reputation are of paramount importance to us. Several factors could adversely affect consumer confidence
in our brand, many of which are beyond our control, and could have an adverse impact on our results of operations. These factors include:

    ●
    any regulatory action or investigation against us;

    ●
    any significant interruption to our systems and operations;
    and

    ●
    any breach of our security systems or any compromises of
    consumer data.

We expect to be
subject to extensive government regulation if we are deemed to be engaged in a regulated business, and we are faced with the risk that
new regulations applicable to our business will be enacted.

Currently, we are indirectly
impacted by government regulation, however, we may be directly subject to a variety of regulations aimed at preventing money laundering
and financing criminal activity and terrorism, financial services regulations, payment services regulations, consumer protection laws,
currency control regulations, advertising laws and privacy and data protection laws which may sometimes result in monetary or other sanctions
being imposed on our financial service providers or us. Many of these laws and regulations are constantly evolving and are often unclear
and inconsistent with other applicable laws and regulations, making compliance challenging and could directly or indirectly increase
our related operating costs and legal risks. In particular, there has been increased public attention and heightened legislation and
regulations regarding money laundering and terrorist financing. Our financial service providers or us may be required