Calpian, Inc. (CLPI) Money-on-Mobile Solution Captures Massive Consumer Market Space in India
Calpian, the Dallas-headquartered electronic payment processing industry specialists focused on Independent Sales Organizations (ISOs) who serve some 2M small merchants ($1B plus in annual residuals) across the country, made quite an impact at the prestigious 5th Annual LD Micro Growth Conference recently.
CLPI was one of the select small/micro cap companies invited to this year’s LD Micro Growth Conference, having been chosen for their innovative stitching up of a massive position of portfolios acquired from ISOs here in the U.S., their consistent publication and trade show presence, as well as their exciting Money-on-Mobile vector, which is tapping into India’s huge consumer market in a compelling way. With a decade together acquiring residuals (over 35k merchant contracts and 200 transactions), the CLPI team is capitalizing for shareholders on a combined 70 plus years of industry experience and it shows in the strength of their domestic game, even landing a $5M funding boost recently on merit of the strength of their U.S. credit card residuals business.
The metrics in India are exceptionally interesting and the angle CLPI has devised is even helped by a flagging Rupee. You see, out of some 1.2B people in the world’s second fastest growing G-20 economy behind China, only roughly 16.7% of the population has a bank account. Let that sink in a minute and then consider the metrics of an all cash economy like that with a very limited payment mechanism infrastructure (debit, credit, and check), where there are nevertheless over 650M cell phones. You tack on the raw logistical transportation issue, with people having to physically walk to and pay for items at point of transaction, and the upside for a solution like Money-on-Mobile becomes overwhelmingly clear.
This is a clutch technology for a burgeoning consumer space. Just look at something like the projected $13B domestic remittance market, or tickets (trains, movies, busses, etc.), why even utilities can be easily paid this way, all with the same familiarity and convenience provided by the individual consumer’s mobile device ($31B market and growing in the aggregate). This is an open market too, with very little competition and CLPI’s leadership position through Money-on-Mobile should be easy to maintain.
The company is creating shareholder returns while making it easier for consumers and other payment processing industry entities to do business; it’s a win-win across the board. The strength of the domestic ISO capture capability will continue to drive baseline growth while the company’s India front continues to heat up. It is a dynamic phase for CLPI and as investor awareness grows, the stable presence already established through numerous/frequent industry publications in places like Transaction World Magazine, will no doubt be catalyzed.