Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 3

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 3
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 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.

Our Strategy and Market

We offer digital payment
solutions and services to businesses and consumers.

We believe the money
remittance business is changing after 50 years of an industry controlled by a very small number of large corporations. According to publicly
available data from Statista, total global remittance payments are estimated to reach over $913 billion in 2025, of which digital payments
are estimated to reach approximately 30% ($273.5 billion) of total remittances. Our ability to capture even a fraction of this massive
global market represents our largest value proposition.

Marketing

We do not have a formal
marketing plan for IPSIPay Express. However, we, together with our joint venture partners, OpenPath and EfinityPay, have been leveraging
existing business relationships, particularly in the gaming and entertainment industries, to attract potential customers to use the IPEX
payment processing solutions.

Once we have established
a core base of customers and are generating sufficient revenues, we will consider the need for a formal marketing plan for IPEX.

Competition

The payment service
business is highly competitive and continued growth depends on our ability to compete effectively. Companies like Western Union, Money
Gram, Paypal, and Venmo, dominate the money remittance business, and most of our competitors have far greater sources of financing, greater
name recognition and have been engaged in the industry longer than we have.

Intellectual Property

On April 28, 2023