March 28, 2022 – Toronto, Ontario – Newt Corporation (“Newt” or the “Company”) is pleased to announce its approval by the City of Morelia, in the Mexican State of Michoacan, to qualify as a vendor to provide a payroll lending software solution to the employees of the municipality. The public administration of Morelia has over 1,000 employees.
Newt’s Lending-as-a-Service solution is quickly obtaining authorization from vendors in Mexico for its all-inclusive mobile app that integrates mobile payroll lending and additional features, such as payday advance, bill payment, gift cards, and Mastercard-labeled credit cards, focused on benefiting the employees and the government through technology.
Recently, the Mexican Congress announced that it is awaiting approval from the Senate on new lending legislation, which, if approved, will mandate implementation of digital systems in order to reduce issues related to payroll lending programs, such as errors and inaccurate data while processing payments within the municipalities. The law aims to mandate digitization of all processes related to employee lending, which will involve digital electronic processing of all transactions, in order to have more accurate reporting, easier access for analyzing billing and fees, and ensuring in-depth transparency. This will alleviate costly and resource-intensive audits common within traditional paperwork environments.
By using Newt’s lending solutions, the employees of the administration will benefit from services such as direct credit, paycheck advance, credit-score building, and the ability to accept deposits directly into their mobile wallets, accessible from their employee mobile app or for use in conjunction with a newly-issued Mastercard-labeled credit card.
Sergio Maya Aleman, Newt’s CEO for Latin America, stated: “We are actively seeking to register approvals from numerous local municipalities and state governments for our licensed Lending-as-a-Service banking entity, which uses highly integrated digital technology to benefit the employees of municipal and state governments while meeting the new lending requirements mandated in Mexico.”
Newt Corporation is a digital payment and financial services platform enabling enterprises to serve the large underbanked population in the Americas with digital financial products and services and access to credit. Newt provides a fairer, faster, accessible ecosystem that fills the credit accessibility gap and reshapes the way businesses and consumers save, move money and conduct commerce. The Company’s financial ecosystem offers mobile and digital bill payments, cross-border money transfers, digital wallet, prepaid stored value cards, and access to a large leading catalog of digital gift cards and subscription services. Newt’s omnichannel distribution and processing capability allows consumers to conveniently connect through mobile, web, point-of-sale and Newt branded electronic payment center kiosks located across a network of merchant locations. Newt is also bringing credit financing for small to medium sized enterprises, payroll loans for consumers, credit cards, loan financing, and other credit services for those who lack access to traditional financing.
For more information, visit www.NewtFinancial.com
About the City of Morelia in the State of Michoacan
Morelia is a city and municipal seat located in the north-central part of the state of Michoacán in central Mexico. The city is the capital and the most populous city in the state of Michoacán and the third most important in the Bajío Region, just behind León de Los Aldama and Querétaro City. According to the most recent census carried out in 2020, the city registered a population of 849,053 (48% men and 52% women), raising its population by almost 145,000 inhabitants in just ten years.
For more information, visit https://www.morelia.gob.mx/
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.