September 5, 2018 – Toronto, Ontario – Newt Corporation (“Newt” or the “Company”) is pleased to announce the successful launch of its Luxembourg subsidiary, Newt Financial Luxembourg.
Newt’s Luxembourg subsidiary shall be wholly-owned by Newt Corporation Canada. This aims to facilitate the company’s expansion and compliance in European markets. It will also be designated as Newt’s strategic hub for European business. Its the intention that the European location will aid Newt in its PSD2 application process, as it only applies to entities registered within the European Union.
The Current European Payment processing market is under the regulation of PSD2 (revised Payment Services Directive), implemented in 2018. PSD2 aims to provide a level playing field for non-banks in the payments industry, and to increase pan-European competition and participation. The Directive offers better consumer protection, promotes innovation in the payments space and reduces cost.
Luxembourg has been a pioneer in creating a legal framework for electronic payment establishments when the relevant EU Directive was transposed into law on May 20, 2011 (currently under PSD2). Luxembourg is the premier private banking center in the Eurozone and the second largest fund center in the world. From its origins as a Euro loan center, the country subsequently developed as a private banking center. It is an ideal hub for global investors because of its stable, innovative and internationally-orientated financial environment.
Under the booming trend, European digital payment market, whose transaction value amounts to about US $698.20 Billion in 2018, is expected to have annual transaction value growth rate at 10.5%.[1] For non-cash payments volume alone, Europe is expected to witness a stable growth of 6.5% over the next five years[2].
Newt’s Luxembourg subsidiary’s goal is, therefore, to capitalize on the growth trend in the EU market, and thus be better positioned to maximize shareholder value.
About Newt
Newt Corporation is a Canadian Company that aims to be a Fintech Leader in money transfers, mobile and digital online payments, and closed-loop payment system. Utilizing the latest payment processing technologies, Newt provides merchants, consumers, and the unbanked population with cashless mobile payment services, rechargeable prepaid cards, and remittances. By choosing Newt Payment System, end customers will take the guessing game out of sending payments, and merchants will be empowered to provide seamless transactions in a more secure and efficient way. Newt’s next generation payment transfer solutions use new methods for international digital transfers. The company’s platform has been designed from the ground up for modern digital transfer with an ecosystem with full configurability, open API integration, and enhanced value-added services.
For more information visit www.GetNewt.com
For further information, please contact:
Newt Corporation
100 King St. West, Suite 5700
Toronto, ON M5X 1C7
info@getnewt.com
Forward – Looking Information
Certain information set forth in this news release may contain forward – looking information that involve substantial known and unknown risks and uncertainties. This forward – looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, failure to enter into a definitive agreement and complete the Acquisition, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward – looking information. The parties undertake no obligation to update forward – looking information except as otherwise may be required by applicable securities law.
[1] The Statistics Portal: https://www.statista.com/outlook/296/102/digital-payments/europe
[2] World Payments Report 2017: https://www.worldpaymentsreport.com/#non-cash-payments-content
