- Rich communication services (“RCS”) and big-data insights provider FingerMotion has seen revenue growth of 25 percent year-over-year in its mobile SMS and MMS services, according to recent quarterly financial analysis
- FingerMotion is beginning to record revenues in a third channel of operations thanks to its trademarked big data platform Sapientus, which is providing the foundation of an array of insurtech services
- China’s mobile payment use saw a sharp increase last year in response to the COVID pandemic and telecommunications products and services providers such as FingerMotion anticipate continued growth during the coming years
- China’s government is also encouraging development of its insurance industry services, providing optimism for continued demand for big data services such as Sapientus’ platform to help build the infrastructure
As mobile payments continue to inch their way upwards in China’s mature smartphone access market, communications technology solutions provider FingerMotion (OTCQX: FNGR) is building revenue growth and pursuing innovations to attract new users and increase engagement.
FingerMotion noted in last month’s report on its Q2 financial position that quarterly growth in its SMS (texting) & MMS (phone photo, video and audio sharing) business revenue had hit 25 percent year over year. And growth in its Telecommunications Products and Services business revenue had reached 142 percent YOY.
China’s population is expected to pass 750 million proximity mobile payment users (using a mobile phone to pay for goods or services while at a physical point-of-sale terminal) during the coming year and approach 800 million by 2025, with a gradual increase in the percentage of the globe-leading population doing so each year following a spike during the pandemic, according to Insider Intelligence analysts (https://ibn.fm/iKjms).
The trend shows that mobile payments have become the country’s top payment method, especially in urban areas, according to Insider Intelligence. By 2025, around two-thirds of China’s consumers are expected to be using proximity mobile payments and peer-to-peer payments (“P2P”) as a regular course of business.
FingerMotion expects to draw on the increased attention it has gained during consumers’ shift to increased digital traffic as a result of the COVID pandemic to continue building its user base, but the company is also turning its attention to the potential of its big data platform, Sapientus.
Sapientus-related revenue has been in a nascent stage this year as the company develops its new services, but the appeal of the company’s unparalleled access to China’s consumers with over half a million transactions daily and its ability to readily draw on data to build the foundations of an insurtech industry have led to agreements such as the deal with global insurer Pacific Life to provide data for Pacific Life’s Re-insurance division.
And the country’s government has encouraged further development of the insurance industry, as noted in the China Banking and Insurance Regulatory Commission’s recent statement encouraging an increase in services to gig-economy delivery workers, elderly people and children with congenital diseases and medical conditions (https://ibn.fm/kHyXc).
That in turn is boosting expectations for big data revenue growth during the coming months.
“This is the third consecutive quarter of Big Data revenues and we expect it to continue and eventually outpace our existing revenue streams,” CEO Martin Shen stated when last month’s report was released (https://ibn.fm/NKhr8). “This quarter was more of a transition to greater profitability as more of our initiatives started contributing to gross margin.”
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://ibn.fm/FNGR
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