Peppermint Faces Execution Risks as It Scales User Base and Integrates New Payment Features

Strong User Growth and Loan Activity

Peppermint Innovation Ltd (ASX, PIL) has delivered a compelling performance in the June 2025 quarter, marked by significant increases in user engagement and lending activity on its digital financial platforms in the Philippines. The Pinoy Coop Mobile (PCM) app saw registered users climb to over 44,000 by quarter-end, a 33% increase from the previous quarter and more than triple the user base year-on-year. This momentum continued into mid-July with total registered users surpassing 51,000.

Complementing this growth, bizmoLoan approved 1,528 loans valued at Php 4.23 million during the quarter, representing the platform’s strongest lending performance to date and a 44% increase over the prior quarter. The company also reported a healthy loan repayment rate and maintained its targeted non-performing loan ratio, underscoring growing user trust and operational efficiency.

Strategic Partnerships and Platform Enhancements

Peppermint’s progress is further bolstered by a formal Memorandum of Understanding (MOU) with two prominent Philippine financial institutions, RCBC and Rizal Microbank. This partnership aims to extend financial services to underserved communities by leveraging bizmoto’s mobile-first technology and Peppermint’s cooperative-linked ecosystem. The collaboration aligns with the partners’ shared commitment to inclusive finance and digital innovation.

On the technology front, Peppermint is preparing to launch InstaPay peer-to-peer (P2P) sender and receiver functionality on the bizmoto wallet in August, enabling real-time transfers and improved interoperability with major platforms such as GCash and Maya. Additionally, integration of the national QR Code standard (QRPH) is targeted for the September quarter, promising seamless payments for cooperative members and micro-merchants across the country.

Leadership and Operational Excellence

The company welcomed fintech veteran Brad Jones to its Advisory Board, effective August 1. Jones brings extensive experience scaling digital financial services across Asia, including leadership roles at HSBC’s PayMe and Wave Money in Myanmar. His expertise is expected to accelerate Peppermint’s platform strategy and regional expansion.

Operationally, Peppermint has invested in critical infrastructure upgrades, including cloud architecture enhancements, real-time monitoring, and advanced security features such as multi-factor authentication and audit trails. These improvements aim to ensure platform stability, regulatory compliance, and user trust as the company scales its product suite.

Financial Position and Outlook

Despite reporting a net operating cash outflow of $462,000 for the quarter, Peppermint maintains a solid cash position with $402,000 in cash and equivalents and $2 million in unused financing facilities, providing an estimated 5.2 quarters of funding runway. The company continues to balance cost discipline with strategic investments in growth and technology.

Looking ahead, Peppermint’s management remains confident in sustaining user adoption and loan growth, supported by new distribution channels and enhanced platform capabilities. The upcoming rollout of full InstaPay functionality and QRPH integration are expected to further entrench Peppermint’s leadership in digital financial inclusion across the Philippines.