Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 192

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 192
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 affect our business, financial condition and results of operations. 

We face certain risks
in the event of a sustained deterioration of financial market liquidity, as well as in the event of sustained deterioration in the
liquidity, or failure, of our clearing, cash management and custodial financial institutions. In particular, in the event of a major
bank or credit card failure, we could be unable to process transactions via our mobile applications: In such a case, or if financial
liquidity deteriorates for other reasons, our ability to operate our business and our financial condition and results of operations could
be significantly harmed.

As our business
develops, we will need to implement enhanced compliance processes, procedures and controls with respect to the rules and regulations
that apply to our business.

Our success requires
significant public confidence in our ability to handle large and growing payment volumes and amounts of consumer funds, as well as comply
with applicable regulatory requirements. Any failure to manage consumer funds or to comply with applicable regulatory requirements could
result in the imposition of fines, harm our reputation and significantly diminish use of our products. In addition, if we are not in
compliance with anti-corruption laws and other laws governing the conduct of business with government entities and/or officials (including
local laws), we may be subject to criminal and civil penalties and other remedial measures, which could have an adverse impact on our
business, financial condition, results of operations and prospects.

13

If we cannot keep
pace with rapid developments and change in our industry and provide new services to our clients, the use of our services could decline,
reducing our revenues.

The payment services
industry in which we operate is characterized by rapid technological change, new product and service introductions, evolving industry
standards, changing customer needs and the entrance of more established market players seeking to expand into these businesses. In order
to remain competitive, we continually seek to expand the services we offer and to develop new projects. These projects carry risks, such
as delays in delivery, performance problems and lack of customer acceptance. In our industry, these risks are acute. Any delay in the
delivery of new services or the failure to differentiate our services or to accurately predict and address market demand could render
our services less desirable, or even obsolete, to consumers. In addition, if alternative payment mechanisms become widely available,
substituting our current products and services, and we do not develop and offer similar alternative payment mechanisms successfully and
on a timely basis, our business