Glance Technologies Inc. (OTCQB: GLNNF) (CSE: GET) is announcing that further to the letter of intent announced on April 26, 2017, it has now entered into a definitive agreement with Euro Asia Pay Holdings Inc. to license its existing mobile payment system to create an app tailored for residents, students and tourists in North America from Asia and Europe.
"I have watched the mobile payments industry grow and evolve in Asia, North America and globally. Of all my ventures, I'm most excited about this one. There is no question that mobile payments are the future, they are already dominant in China and it is only a matter of time until the rest of the world follows," says Morris Chen, Euro Asia Pay Holdings Director.
Glance Pay is positioned to provide payment services that are similar to the ones in China and Europe using its Glance Pay Anywhere technology, which allows users to initiate and send payments to merchants from any location.
Alipay, and WeChat Pay together hold a commanding 90% of the market in China, leaving Apple Pay struggling to make inroads. This creates an opportunity to provide the alternative for visitors and new residents from China in Canada and the US.
In 2016, China's mobile payments industry hit USD$5.5 trillion, roughly 50 times the size of America's $112 billion market, according to consulting firm iResearch. It is clear that the ability to pay through mobile applications has become commonplace for Chinese consumers. This trend is continuing to move beyond China to destinations, such as Canada and the US.
According to Kantar TNS, even in other regions such as Singapore, 57% of connected consumers have used mobile payment, with more than a quarter (27%) doing so on a weekly basis. Chat apps popular in Asia such as WeChat and LINE have developed native payment applications facilitating everything from taxi bookings to eCommerce sales. This has helped to establish mobile payment methods as habitual for Asian consumers. In the Asia Pacific region, over half (53%) of connected consumers using mobile apps for payment at point of sale, in comparison to 33% in North America and 35% in Europe.
Chinese visitors contribute over $1 billion annually to the Canadian economy, and Canada is ranked at the 7th most popular academic destination for Chinese students.
"Visitors and new residents from the Asia Pacific region are already accustomed to mobile payments, which are overtaking cash and credit cards abroad, and we believe the trend is set to accelerate in Canada and the US as well. We believe we are well positioned to serve this growing market" says Desmond Griffin, CEO of Glance.
Under the terms of the agreement, Euro Asia Pay shall pay $1,000,000 to Glance Pay as follows:
- $405,000 in cash for licensing with $250,000 payable on signing and $155,000 payable within 90 days; plus $210,000 payable by way of 3,000,000 shares of Euro Asia at a deemed price of $0.07 per share
- $175,000 for design of the app with a unique user experience, $175,000 payable within 60 days through the issuance of 2,500,000 shares of Euro Asia at a deemed price of $0.07 per share
- $210,000 within 60 days or marketing and advertising of the new app, payable through the issuance of 3,000,000 shares of Euro Asia at a deemed price of $0.07.
Glance has already received the first payment of $250,000 pursuant to the agreement. Immediately after the share issuances paid pursuant to the license agreement, Glance will own approximately 30% of Euro Asia Pay. Glance has agreed to enter into 3 year escrow provisions for the stock as set out in National Policy 46-201 Escrow for Initial Public Offerings.
This deal grants the Licensee a worldwide, non-exclusive license to use the Glance Pay mobile payments system in order to make, market and sell the new app.
This is the third licensing deal signed by Glance since May 2017, with a total of $3 million in deals signed in Fiscal 2017.
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