Peeks Social Announces Changes to Its Payments Procedures and Policies and the Appointment of Khalil Rajan as Interim CFO
TORONTO, Nov. 12, 2018 (GLOBE NEWSWIRE) -- Peeks Social Ltd. (TSXV: PEEK; OTCQB: PKSLF) (“Peeks Social” or the “Company”) announced that changes to its payment processing services, payment policies and broadcaster payout processes.
Peeks Social provides an ecommerce enabled livestreaming service that allows broadcasters on the Peeks platform, to earn commissions by receiving donations from viewers and by charging viewers for access to content. In order to provide broadcasters with a competitive quality of service; the Company has historically accommodated weekly settlement of funds to broadcasters; as opposed to the three-week settlement period stated in the Company’s Terms of Service. Initially, credit card processing was the primary means by which the Company processed consumer payments. Credit card processors typically settle funds to the Company within 2 days; well within the one-week settlement window for broadcasters. Throughout the evolution of the Peeks service, the primary payment processing service has shifted to in-app payment processing services provided by Apple and Google. The settlement period to the Company, for funds processed via in-app payments, ranges from 45 days to 60 days. The longer funds settlement periods associated with in-app payments, in concert with a competitive requirement to settle broadcaster funds quickly, have collectively resulted in both, real and perceived payment delays to broadcasters. In addition, a continuously growing userbase and a continuously increasing volume of payments processed has resulted in an increased number of users who have experienced both real and perceived payment delays.
Peeks Social Ltd. has performed an internal review of its financial processes and policies pertaining to payments and a review of its suite of consumer payment processing options. As a result of the review the Company has identified all the factors causing broadcasters to experience real and perceived delays in receiving payments from the Company. To resolve the delayed payment issue; management has implemented significant changes to its payments policies, including but not limited to, extending settlement periods out beyond the settlement period of the payment processing service used by the consumer to make purchases or send tips on the Peeks platform. In addition, the Company has made changes to its corporate communications to broadcasters. Broadcasters will now be made overtly aware of settlement periods for funds owing to them by the Company. Moreover, the Company is implementing several new payment options that allow for significantly shorter settlement periods than in-app payment processing.
The new payment services allow for settlement periods ranging from the same day to 4 days, as compared to 45 days to 60 days for in-app payments. The new payment options include: online debit, email money transfer, and online chequing (ACH/EFT). The Company’s objective is to migrate the majority of its payment processing away from in-app payments and onto its new payment processing services over the next few months. The Company’s new payment processing services will be integrated into the Peeks Wallet found at www.peeks.social. The Company will be promoting its new suite of payment services via all consumer contact points, such as; the Peeks Social website that can be found at www.peeks.social, email notification, in app notifications, broadcaster announcements and in-service promotions. Users will be incented with discounts for the purchase of coin packages using any of the new payment options found on www.peeks.social.
The Company is also pleased to announce the appointment of Khalil Rajan as interim CFO. Khalil brings 4 years of public Company finance and accounting experience, including 3 years of professional financial services at KPMG Toronto. Khalil holds a Bachelor of Commerce from the DeGroote School of Business at McMaster University, as well as a CPA, CA with the Chartered Professional Accountants of Ontario.”
The Company will also like to announce the departure of Alex McDonald the Chief Financial Officer of Peeks Social Ltd. Mr. McDonald served as CFO for Keek Inc. from 2014 to 2016 and subsequently he served as the CFO of Peeks Social from 2016 to the present. We would like to thank Alex for his many contributions to the Company and wish him well in his future endeavours.
For further information, please contact:
Peeks Social Ltd.Mark Itwaru Chairman & Chief Executive Officer 416-639-5339 firstname.lastname@example.org
David VinokurovDirector Investor Relations416-716-9281 email@example.com
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