Dear Fellow Shareholder,
I want to personally thank you for your commitment to Spindle, which has been, and will continue to be, foundational to our success. It is vitally important to keep our shareholders apprised of our progress, and Spindle is committed to maintaining open communications with you. I am therefore pleased to provide you with the following update on Spindle's sharpened vision, the rapidly expanding market we exist in, and our exciting progress with developing lasting business relationships in domestic and international channels.
As many of you know, Spindle Inc. is comprised of a strong management team led by seasoned executives with 80 plus years of collective experience in both the payments and mobile marketing sectors. Your executive team has considerable experience with opening new markets and delivering new technology solutions over the past 25 years. I can truthfully say that our management team has the networks, skills, and commitment to be successful in offering solutions for the new mobile economy.
Knowing these markets, our customer base, and recognizing the need for seamless functionality to the end-user in today's mobile milieu, our team set out to create a revolutionary mobile commerce platform with features unparalleled in the industry. We have created our systems in-house which has allowed us to best manage our development lifecycle and product versions. The resulting technology allows merchants to add mobile marketing and mobile payment capabilities to their business almost instantaneously while also taking the confusion out of mobile commerce. Our business model is not one-size-fits-all like our competitors. We tailor our platforms to optimize and simplify the mobile commerce experience between our merchants and channel partners, and their customers, the general public. As each business is different, we believe our platform will project and enhance that desired image to the marketplace as commercial transactions occur.
Over the past year, we have, at times, been somewhat quiet about our plans and successes. This was a calculated decision, as we wanted to enter the market without broadcasting our proprietary technologies to our competitors. We also needed to fully transform our products (which we accomplished in 2012 and early 2013) from development to deployment. In January, our payment platform achieved the highest possible processor certification in the industry, payment card industry (PCI) service provider level 1, and we are partnered with the 2nd largest merchant services company in the United States to sponsor our payment processing initiatives.
Spindle is focused on advancing our vision and creating a one of a kind platform for mobile commerce. Today, we've created one of the market's first integrated mobile merchant marketing and payment platforms. Our go to market approach delivers a building block strategy for our channel partners with a white-label capability that is gaining considerable traction. To date, our mobile solutions are present in approximately 80 plus markets in the United States and 20 countries across the globe. We've signed on in excess of 6,000 merchants, and have over 300,000 mobile consumers leveraging the application. In addition, our MeNetwork services will soon connect small business merchants to more than 10 million consumers an offering we will make available through our 130 agents and channel partners.
In the last twelve months, the Company is pleased to have accomplished the following milestones:
-Developed and deployed full service Payment Services Platform (PSP).
-Achieved Payment Card Industry Level 1 certification with our PSP systems deployed in Amazon AWS Cloud - one of the first for Amazon.
-Launched our first partner branded channel with SLIDE Safe LLC to enter the tier 2 telecommunication market with Spindle's mobile point of sale (MPOS) technology.
-Launched partnership with Utiba Mobility and integrated our respective platforms for international release of Spindle's MPOS products.
-Completed the acquisition of Parallel Solutions, Inc., which added merchant volume and independent sales agents.
-Completed the acquisition of MeNetwork, Inc. to strengthen our mobile marketing offering. Please visit TheMeNetwork.com and download the app.
-Created a partnership with TruEffect to integrate our MeNetwork mobile merchant platform with TruEffect's world class display advertising services.
-Entered into an agreement with NCR Corporation to redistribute NCR Silver, a SaaS based point-of-sale (POS) system enabling Spindle to bundle merchant solutions for small and mid-size businesses looking for innovative cloud based solutions.
-Partnered and implemented the AccuLync/PayLeap branded mobile commerce channel.
-Established product and sales partnerships with Zing (Cloud based mobile POS) and Integrated Payments (a leading POS integration company).
-Bolstered executive management with the additions of payments industry veterans John Tharpe, Thomas Lineen, and marketing industry veteran Michael Stevens.
-Appointed telecommunications and payment technology veterans John Reardon and Craig Page to the Company's independent Board of Directors.
We are also working hard to be known as experts in the space of mobile, mobile wallet, and mobile acceptance. We have been invited to speak at payment conventions for CARTES and Mobile Payments Conference, and as a panelist at ITEXPO.
We all see behaviors changing in the mobile economy. A recent report by BI Intelligence found that consumers are beginning to see the advantage of channeling offline payments through their mobile devices rather than carrying around traditional methods, (cash & coin, and even debit and credit cards). We believe consumers are primed to go traditional wallet-free and begin paying for goods and services via their mobile devices, and as a result, mobile payments are set to witness tremendous growth.
BI Intelligence reports that in-store mobile payments nearly quadrupled last year, and mobile payments are exploding as a part of mobile commerce. We also know from public releases that PayPal, alone, has processed $14 billion in mobile payments last year.
There are many "digital wallets" in the market, but what we see missing is the general acceptance of these wallets at the point of sale. Keep your eye on this subject as we believe this is the next evolution, which based on recent news, appears to have already begun. For mobile commerce to truly become part of our daily interactions, we must have appealing solutions in the hands of both the consumer and merchant. Spindle's product is designed to deliver this compelling critical engagement in the mobile commerce ecosystem.
According to James Brehm, with industry analyst firm Compass Intelligence, the US mobile commerce market is expected to grow from a nearly $9.7 billion market today to over $126 billion in 2018 with a compound annual growth rate of nearly 53%.
As you can see, the mobile commerce space within the next few years appears poised for significant growth. We believe all of our hard work to date has placed us, and our shareholders, in a strong position to benefit from this emerging industry. While there remains much work to do, we are excited and optimistic as we look to the future.
Our team is committed to creating long term sustainable shareholder value and we intend to continue to work diligently towards this pursuit. On behalf of myself and the rest of the Spindle team, we appreciate your confidence in us and your enthusiastic support.
Chief Executive Officer
About Spindle, Inc.
Spindle is an innovator of mobile commerce solutions for financial services providers and consumer-facing merchants of all sizes. Spindle is focused on pioneering new ways for businesses to rapidly integrate mobile payments acceptance and mobile marketing services while empowering location-based merchant discovery, fulfillment and frictionless mobile payments for consumers. Spindle is dedicated to expanding beyond traditional electronic payment boundaries by offering solutions that allow clients, partners, merchants and consumers to take full advantage of the rapidly emerging mobile economy. Spindle has a proprietary intellectual property portfolio which include patents pending that encompasses networks, mobile payments, and security. For more information, visit www.spindlehq.com.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements, as described in our reports filed with the Securities and Exchange Commission which are available for review at www.sec.gov, to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Public Relations Contact
Chief Executive Officer
Parallel Communications Group
Investor Relations Contact
LR Advisors, Inc.
SOURCE: Spindle, Inc.
- Technology & Electronics
- mobile payment