Mr. Clayton Moore reports
NETCENTS TECHNOLOGY ISSUES CEO LETTER TO SHAREHOLDERS
NetCents Technology Inc. has issued a letter to shareholders from its chief executive officer, Clayton Moore.
"Dear fellow shareholders,
"Since launch, we boldly engineered an approach that mitigated the risk and volatility for merchants and consumers to adopt a new transactional medium. We seamlessly integrated cryptocurrency processing while ensuring we motivated these two key groups, who along with you, are the pillars of our growth.
"We knew getting early buy-in required a new level of protocols to protect against fraud and identification theft while meeting a regulatory discipline to maintain the integrity of our system. We created trust with consumers and a seamless and intuitive merchant terminal-enabled user experience for buying, selling and transacting with cryptocurrencies.
"We've been aggressive over the past two-plus years building an agile merchant gateway network. And, as we always believed, 'if we build it, they will come,' and come they have. Today, we're being equally aggressive in what comes next.
"By most key measures, NetCents' merchant gateway has been a success. Transaction volume, average transaction value, processing volume and new merchant sign-up numbers tell a compelling story. In May, we announced an average 41 per cent month-over-month increase in processing volume and a projected 40-per-cent monthly growth rate. We also projected we'd surpass a 2020 first calendar quarter with a $2-million monthly processing volume. We're on pace to reach this target based on 2019 processing rates.
"August processing volume was 539 per cent greater than February -- taking us less than five days to surpass the entire previous month. It wasn't an anomaly; it was a strategy. We now need to MAP (merchant acquisition program) our next steps to encourage more merchant participation and greater consumer benefit.
"In this latter half of 2019 and through 2020, NetCents will be taking a tailored three-pronged approach. First, we're placing a relentless focus on sales and marketing; second, we anticipate launching a branded credit card and third, we're cutting cost and creating ease for cross-border remittance.
"Core to what we do is market our brand to enhance our sales funnel, and build competitive advantage and market share. We've been driving awareness through on-line digital advertising and have powered 32 partner agreements allowing integration to over 26 million terminals across worldwide merchants. We undertook trials in key cryptocurrency payment markets enabling a 30-per-cent lead to close and a 10-per-cent activation rate that in turn is driving monthly processing volumes.
"Our sales approach is equally aggressive. Starting in September, our new top-tier internal sales team is tasked with adding 15 enterprise merchants that process over $20-million (U.S.) per year in sales with a monthly baseline of $100,000 cryptocurrency transactions. The team advancing MAP offers analysis of tens of thousands of businesses across North America, Europe and Australia ranking them against a scoring system, personalizing their outreach message by business or vertical and launching an educational content program on their respective market trends and NetCents' products and programs.
"We're also arming our sales team with an important tool. NetCents' cryptocurrency credit card. Anticipated to launch in 2020 with Canadian NetCents customers, our credit card will enable worldwide access at over 40 million merchants offering Visa.
"We believe this launch is a truly competitive feature of the NetCents offer. Unlike other credit cards, the NetCents Visa is not prepaid, does not require users to liquidate cryptos and it converts a crypto or fiat spend on the spot. Use the card whenever, wherever, we take care of everything else.
"When pioneering new payment technology with more traditional payment systems there can be unexpected challenges. The Visa card program has proven to be just that. NetCents takes great pride in overcoming hurdles and, without question, our team will overcome this Visa delay.
"We're excited by the prospect of empowering more consumers with the ease of crypto purchase. And we're encouraged by the insights we'll gain from real-time, real-life cryptocurrency credit card transactions. While maintaining strict standards for data protection and ensuring full regulatory privacy compliance, we'll finally have empirical data to offer transparent insights on cryptocurrency spending and preference habits.
"Ambiguous, unqualified data currently driving industry analysis and commentary will be replaced. It will allow data-driven decision-making to become the competitive advantage throughout our sales funnel. It will also activate our proprietary analysis to position NetCents as an industry and thought leader.
"As we hone targeted insights across verticals, markets and merchants, we anticipate hesitancy surrounding the adoption of cryptocurrency as a payment option to decline. Additionally, with in-market scale, it is reasonable to anticipate the cascading effect of decreases in merchant transaction fees over traditional payment methods; elimination of chargebacks; increases in average order size; and an expansion of merchants into the global cryptocurrency market which is expected to be worth $6,702.1-million (U.S.) by the end of 2025.
"The final prong in our 2019/2020 strategy is to reduce the cost of remittance, replacing the current financial services industry's centralized business model. The global remittance market is expected to reach $715-billion (U.S.) in 2019. As this market grows, blockchain and cryptocurrency are poised to overshadow the traditional clearing structures allowing for faster and cost-efficient solutions. Starting in September, leveraging the NC exchange and user portal, NetCents along with our first remittance partner will begin processing cross-border remittance payments.
"We're thankful and encouraged by your continued support. And we're humbled by the confidence from our merchant partners, sales associates, advisers and others who are helping us fine-tune our market offer. It sounds simple in its approach. In some ways it is. We remain confident that if we keep customers and merchants as our pillars in building what comes next, we can deliver efficiency, transparency, acceptance and action."
About NetCents Technology Inc.
NetCents, the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a money services business with Financial Transactions and Reports Analysis Centre of Canada.
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