Here’s why the Peppermint Innovation share price is flying higher today

A farmer uses a digital device in a green field.A farmer uses a digital device in a green field.

The Peppermint Innovation Ltd (ASX: PIL) share price is surging higher today. Today the company emerged from the trading halt it entered on Monday.

At the time of writing, shares in the ASX mobile banking payments provider are up 17.65%. In earlier trade on Wednesday, Peppermint Innovation shares posted gains of more than 23%.

So, what’s piquing investor interest?

What’s this about an electronic money issuer license?

The Peppermint Innovation share price is leaping higher today after the company reported the Central Bank of the Philippines, Bangko Sentral ng Pilipinas, had granted it a license to operate as an electronic money issuer (EMI).

The EMI licence allows Peppermint to deliver e-wallet services through its Bizmoto mobile app. This will enable any Filipino to use its Bizmoto platform to receive digital money and access digital services.

According to the release, some 39 million Filipinos are transacting digitally.

The company said it plans to reach out to farmers, fishermen and entrepreneurs, along with Filipinos living on day-to-day pay cheques. Via Bizmoto they’ll have faster digital access to their salaries, pensions, and any other payments they’re entitled to.

Commenting on the EMI license, Peppermint Innovation CEO Chris Kain said, “We always said one of our operational objectives was to obtain an EMI licence and we’ve now achieved that milestone.”

According to Kain:

The issuance of an EMI licence for Peppermint will, ultimately, deliver significant value to the company and to the communities we operate in. Clearly, the digital revolution is with us and the Bizmoto platform can now facilitate any e-money transaction and service open-loop e-wallet accounts, providing Filipinos with a convenient and secure way to receive digital money and services.

The Peppermint Innovation share price could also be getting a lift from projections by the Central Bank of the Philippines. The bank forecasts that 50% of all retail transactions in the Philippines will be digital by 2023. Further, the central bank believes that 70% of Filipino adults will have formal accounts by next year.

Peppermint Innovation share price snapshot

The Peppermint Innovation share price is up 85% in 2022. That compares to a 4% year-to-date loss posted by the All Ordinaries Index (ASX: XAO).

Peppermint Innovation is a microcap ASX share subject to big share price swings. It has a market cap of $34 million.

The post Here’s why the Peppermint Innovation share price is flying higher today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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