JAKARTA, Indonesia, Nov. 25, 2019 /PRNewswire/ -- KinerjaPay, through its newly formed Indonesian subsidiary, PT Kinerja Sukses Gemilang, (PT.KSG) announced that it has been notified that its lending permit to operate as a micro loan lending platform for individuals as well as Micro, Small and Medium Enterprises (MSMEs) will be issued in early December, 2019. All such platforms in Indonesia must be registered by the country's Financial Services Authority, known as the OJK. The notification came as a result of the company successfully passing the fit and proper test as well as conducting a live demo of the application and platform last week.
P2P lending connects indivdual, institutional investors as well as the company's subsidiary itself with other individuals or small businesses that need money. Interest rates are higher than those charged by banks but are typically lower than black market loan sharks' prices. The Indonesian market for these loans hit $3.1 billion in June, 2019 versus $19.6 million in 2016 according to the country's Financial Services authority, (OJK).
The Indonesian Market for these non bank loans is vast. There are 63 million MSMEs, of which only 26% have access to financing according to government data. In 2016, the OJK estimated that these businsses' yearly unmet financing needs totaled over $68 billion (988 trillion Rupiah). Similarly, only 29% of Indonesian's 186 million lower to middle income, working age individuals have access to credit.
The company has arranged non equity sources of capital to rapidly expand this business. The Company intends to act as a principal using its own platform to lend these micro loans to small business as well as individuals who have verified employment. In addition, the company will earn an agency fee for allowing individuals and small businesses to use its platform. The company believes that this is the "Killer App" that will propel its business to profitability in the near term.
"Over the past months the company has diligently worked to achieve this license that we applied for earlier this year. Though it has taken longer than we anticipated, we are excited that we have been informed we passed all the qualifications to reach certification." stated Mr. Edwin Ng, CEO of KinerjaPay Corp (KPAY). The Company's representatives and teams led by Mr. Anoki Kiyoshi, had taken the needed aptitude tests, fit and proper test as well as a live demo of the application in order to be in full compliance with regulations.
KinerjaPay enables consumers to "Pay, Play and Buy" through its secure web portal and mobile applications. Based in Indonesia, the Company provides an easy and convenient payment solution while shopping online at its marketplace platform. With its current omni-channel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance and direct transfer to anyone at their convenience. KinerjaPay is also planning to launch other eCommerce verticals such as travel market, delivery services, and online gaming in the near future. The Company's services are available through its mobile applications and on its website at www.kinerjapay.com.
Notice Regarding Forward-Looking Statements
This press release may contain forward-looking statements, about KPAY's expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. In addition, from time to time, KPAY or its representatives have made or may make forward-looking statements, orally or in writing.
Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "intend," "plan," "may," "should" or "anticipate" or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by KPAY with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of KPAY's authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause KPAY's actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause KPAY 's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements, including, but not limited to, the factors summarized in KPAY 's filings with the SEC. In addition, KPAY operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. KPAY does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise. Please see the risk factors associated with an investment in our securities which are included in our Annual Report on Form 10-K as filed with the SEC on April 20, 2018 and most recently in our Registration Statement on Form S-1/A filed with the SEC on December 21, 2018, pursuant to which we are offering 300,000 Shares of 11% Series C Cumulative Redeemable Perpetual Preferred Stock at $25.00 Per Share.
For more information, please visit our website http://www.kinerjapay.co. There you will find access to all of our past press releases and SEC filings regarding the activities discussed in this release.
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SOURCE KinerjaPay Corp.