May 31, 2022 – Toronto, Ontario – Newt Corporation (“Newt” or the “Company”) is pleased to announce its approval by the City of Leon, in the Mexican State of Guanajuato, to qualify as a vendor to provide a payroll lending software solution to the employees of the municipality. The public administration of Leon has over 1,500 employees.
Newt’s Lending-as-a-Service solution is quickly obtaining authorization from potential customers like Municipalities and State Governments in Mexico for its all-inclusive mobile app that integrates mobile payroll lending with additional features, such as payday advance, bill payment, gift cards, and Mastercard-labeled credit cards, providing benefits to both employees and the government through improved transparency and efficiency.
On March 17, 2022, Mexico’s Chamber of Deputies passed a bill to enhance the regulation of payroll-deductible loans, excluding previous suggestions from the Ministry of Finance and Public Credit to cap interest rates and require lenders to amend existing agreements with government employers to comply with the finalized legislation.
The bill’s current form would allow payroll lenders to be paid directly from borrowers’ employers before payment is made to employees’ bank accounts, subject to employees signing an irrevocable authorization for payroll deduction. Workers could borrow up to 40% of compensation, excluding pre-existing debts.
Sergio Maya Aleman, Newt’s CEO for Latin America, stated: “We continue to expand our list of Municipalities and State Governments who are willing to offer Newt’s lending solution to their employees. We are actively seeking to add more municipalities and state governments to our licensed Lending-as-a-Service, highly integrated digital technology that includes KYC, open banking, credit scoring, and real-time analysis of employee data, which will benefit local administrations with added transparency and efficiency.”
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 Leon in the State of Guanajuato
León is the most populous city and municipal seat in the Mexican state of Guanajuato. In 2020, it was reported that 1,721,626 people were living in the municipality of León, making it the fourth most populous municipality in Mexico.
León has a strong leather industry, offering shoes, boots, belts, jackets, and other leather accessories to national and international markets. Its first-class services and hotel industry make it an important commercial center in Mexico with numerous options for entertainment, gastronomy, leisure activities, arts, and recreation. It is also considered one of the most environmentally friendly cities in Mexico and has a high number of cyclists, in part because of integrating a network of bike lanes into the SIT system.
For more information, visit https://www.leon.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.