The Company continues to morph from its early stages of bitcoin mining into a disruptor in the global payments market with its secure, low cost and instant blockchain-based money transfer app, AirPocket.
The partnership agreement, signed in February with one of Latin America’s largest telecommunications groups, allows consumers in North America the choice to use DigitalX’s AirPocket app to top-up and pay the mobile phone accounts of more than 100 million mobile subscribers in Latin America. DigitalX will receive an 11% commission, alongside standard rate fees, on the value of transfers that will range between US$2 and US$70.
DigitalX also signed a Memorandum of Understanding (“MOU”) in February with one of Mexico’s leading payment providers, which, subject to the entry into formal documentation, will allow customers to use the AirPocket app to transfer money from the US to Mexico to be withdrawn in Mexican Pesos. The US-Mexico remittance corridor is one of the world’s largest and was estimated to be worth US$25 billion in 2014 by the World Bank.
DigitalX Direct trading activity in the quarter ending 31 March 2016 produced ~$5.7m in revenue and helped to offset the cash burn from AirPocket development and integration costs and the winding down of mining. DigitalX Direct revenue was $2.42m for the quarter, a fall of 35% from the prior quarter. The performance of DigitalX Direct and Liquidity Operations was reflective of the low volume seen across USD exchanges globally, which fell 61% over the same period. The platform has seen renewed interest since the end of the quarter in line with global exchange volume.
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