Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 186

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 186
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 result in a claim for substantial damages
against us and significant reputational harm, regardless of our responsibility for the failure. In addition, through our other service
providers, we have access to or are required to manage, utilize, collect and store sensitive or confidential customer or employee data,
including personal data. As a result, we are subject to numerous U.S. and non-U.S. laws and regulations designed to protect this information,
such as various U.S. federal and state laws governing the protection of personal data. If any person, including any of our employees,
negligently disregards or intentionally breaches controls or procedures with which we are responsible for complying with respect to such
data, or otherwise mismanages or misappropriates that data, or if unauthorized access to or disclosure of data in our possession or control
occurs, we could be subject to liability and penalties in connection with any violation of applicable privacy laws and/or criminal prosecution,
as well as significant liability to our customers or our customers’ clients’ for breaching contractual confidentiality and
security provisions or privacy laws. The loss or unauthorized disclosure of sensitive or confidential customer or employee data, including
personal data, whether through breach of computer systems, systems failure, employee negligence, fraud or misappropriation, or otherwise,
could damage our reputation and cause us to lose customers. Similarly, unauthorized access to or through our information systems and
networks or those we develop or manage for our customers, whether by our employees or third parties, could result in negative publicity,
legal liability and damage to our reputation, which 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