Canadian fintech enters the prepaid market with new consumer
solution
VANCOUVER, British Columbia,
Feb. 22, 2017 /PRNewswire/ -- Mogo
Finance Technology Inc. (TSX: MOGO) ("Mogo"), a leading Canadian
financial technology company, today announced the launch of the
digital Mogo Spending Account with Platinum Prepaid Visa Card. This
is the fourth product in Mogo's innovative line-up of financial
solutions designed to help Canadians manage their financial health
and represents the next step toward Mogo's vision to build the best
digital banking experience in Canada.
The digital spending account can be opened for free in less than
three minutes through Mogo's iOS mobile app. The spending account
comes with a Platinum Prepaid Visa card that is Chip/PIN and
Paywave enabled. Funds can be transferred instantly from most bank
accounts in Canada into the Mogo
Spending Account directly through the app, giving consumers a
convenient way to manage their spending without having to change
banks. The account is designed to help consumers monitor and
control their spending in a convenient and engaging way, through
features such as instant transaction alerts with each purchase
along with updated real-time balance. There are no monthly account
fees and, unlike a regular credit card, using the MogoCard means
there is no risk of overdraft fees or interest charges. In
addition, when consumers sign up for a MogoAccount, they have the
added benefit of access to Mogo's other products including free
monthly credit score monitoring, mortgages and personal
loans.
"The launch of our digital spending account represents another
important growth milestone for Mogo, bringing us into the large and
growing payments market with a highly differentiated solution,"
said David Feller, Founder and CEO
of Mogo. "One of the biggest financial challenges consumers face is
overspending, as credit cards are designed to incentivize spending
while debit cards make it difficult to stay on budget. Our new
spending account is designed to solve the overspending problem. We
are leveraging the power of our technology platform to deliver a
digital product that is not only much more convenient, it also
gives consumers real-time data to help them manage and control
their spending. With more than 350,000 members and our suite of
innovative solutions, we continue to build on our market leadership
as we work to deliver the best digital banking experience in
Canada."
"We're always looking for ways to offer products that save
consumers money so we're excited to provide this product to
customers for free with no monthly fee while Mogo earns the
interchange revenue on transactions," said Greg Feller, President and CFO. "Moreover,
this product is a low-hurdle way for Canadians to add Mogo to their
financial wallet and immediately get value and utility they are not
getting from their current financial institution. Over time, as we
continue to introduce new products and earn the trust of our
members, our expectation is we will gain an increasing share of
their financial wallet."
Mogo has begun rolling out the product to members on its
waitlist – to sign up for free download the iOS app.
About Mogo Finance Technology Inc.
Mogo (TSX: MOGO)
— a Vancouver-based
financial technology company — is focused on building
the best digital banking experience in Canada, with innovative products designed to
help consumers get in control of their financial health. Built
mobile first, users can sign up for a free MogoAccount in only
three minutes and get access to free credit score monitoring, a
free spending account, mortgages and personal loans. With more than
350,000 members and growing, Mogo is leading the shift to digital
banking in Canada. To learn more,
please visit mogo.ca or download the mobile app.
Forward-Looking Statements:
This news release contains
"forward-looking statements" within the meaning of applicable
Canadian securities legislation. Forward-looking statements
include, but are not limited to, the launch of its digital spending
account and projections regarding member growth. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual financial results, performance or
achievements to be materially different from the estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are
not guarantees of future performance. Mogo's growth, its ability to
invest in its platform and expand into new products and markets and
its expectations for its financial performance for 2016 are subject
to a number of conditions, many of which are outside of Mogo's
control. For a description of the risks associated with Mogo's
business please refer to the "Risk Factors" section of Mogo's
annual information form dated March 30,
2016 for the year ended December 31,
2015, which is available at www.sedar.com. Except as
required by law, Mogo disclaims any obligation to update or revise
any forward-looking statements, whether as a result of new
information, events or otherwise.
Visa® is a registered trademark of Visa Int. Service Association
and used under license. Mogo Platinum Prepaid Visa Cards are owned
and issued by Home Trust Company, a TM licensee of Visa Int. and
subject to Terms and Conditions. Your MogoCard balance is not
insured by the Canada Deposit Insurance Corporation. MogoCard is
subject to Terms and Conditions. The Mogo Spending Account is only
available to MogoAccount holders with an activated MogoCard.
Media Contact:
Alex Melberg
(401) 595-9423
alex@fletchergroupllc.com
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SOURCE Mogo Finance Technology Inc.