Ryvyl Inc. (NASDAQ:RVYL) Q2 2023 Earnings Call Transcript

But I want to mention as well that PayPal is in the low-risk space and they don’t touch the medium to high risk. So I think we have a great opportunity with our technology and our offering, there’s something that PayPal not necessarily can offer to their client. So I see a great opportunity for all of us in that space and again, it’s just the beginning of it. So I’m very excited.

Ben Errez: Thanks, Fredi. I’ll take the next question, a subject that is very close to my heart. Can you clarify as much as possible as to the timeline of the coyni spin-off and the related dividend. I very much like the dividend idea for all shareholders and we are diligently pursuing that opportunity and pushing it forward as quickly as we can. As it stands right now, we have acquired the launch vehicles for the coyni spin-off. We have filed articles of merger with the state of Nevada and have those approved. And we have filed for a name change and a ticker change appropriately for coyni with FINRA and are awaiting that confirmation. We suspect that that will happen fairly shortly. With that on hand, we will go ahead and file the registration statement for the shares that are going to be used for the dividends.

We anticipate that registration statement to be considered and approved by the SEC in a fairly short timeline, perhaps 30 to 60 days. Following that, we will announce the date of record for the dividend and take steps towards distributing that dividend. As we said on the call, we anticipate that to be completed by the end of the year. I will also take the next question. Does the company have any updates on pursuing the entitlements under the Sky Financial purchase agreement? So very quick update on that. We are pursuing that option for us on the legal front. We’re still looking through different strategies to maximize recovery under that liability. And as it stands right now, we don’t have any further substantive updates to share with everybody, but we will obviously share alternate information as that comes about.

Here’s the next question. Can you talk about the strategy to scale up into a larger or bigger economy or is that the focus on maximizing opportunity in smaller economies and face less competition such as Bulgaria or Samoa, et cetera. Min, I’ll hand you the baton to take a crack at that first.

Min Wei: That’s a great question. In terms of growth strategy, we’ve been very selective. Rather than categorize into larger versus smaller economies, we’d rather look at our focus on specific verticals and geographics. For example, in the U.S., our block processing volumes growing — continue to grow very robustly, right? We have seen more than 15% to 20% growth from Q1 to Q2. We expect to continue to focus on the verticals we serve today to achieve double-digit growth in the U.S. market, focus on the specific verticals we target on. Now separately, we are also looking at new verticals and new geographics where we have less competition, where we expect to generate higher profit margin. For example, our plan to roll coyni in the European market will focus on specific medium to high risk, high return verticals.

We have a plan in the process of establishing the business entities, loading out the product platform in the second half [indiscernible] of the European market. In the U.S., we’re also in the process of progressing the rollout of our coyni services for e-commerce programs and some additional wallet programs as well. So I would say all-in-all, we focus on select verticals. We focus on select business portfolios that’s going to generate a good profit margin. As a result of that we can generate better returns for our shareholders.

Ben Errez: Thanks, Min. The next question will go to Fredi. Can you elaborate on the mPOS capabilities and how that’s being marketed? Any estimate impact on financials and timing that you can provide. This follows a PR that we just released about this new product of ours. Fredi, go ahead.