Blog Layout
IT World: 'Digital payment technology empowering next-gen consumers worldwide'
Hero Group • Feb 17, 2022
IT World: 'Digital payment technology empowering next-gen consumers worldwide'
By Peter MacKay, EAP's Chief Executive Officer, for IT World Canada.
Present-day fintech and digital payment solutions are at the forefront of empowering consumers. Gone are the days of having to stand in line waiting for a bank teller. With growing fintech and digital payment platforms, consumers have a wide array of financial services available at their fingertips — at anytime, and from anywhere.
New consumption patterns
The COVID-19 pandemic has presented significant challenges, and has dramatically impacted consumer habits and patterns. The health crisis turned into an economic one quickly, as closures and restrictions were imposed. Businesses worldwide were affected and employees across multiple industries have felt the crunch. While the economic repercussions were noticed by all age groups, Gen Z was disproportionately affected. COVID-19 disrupted education, put career plans on hold and diminished the financial outlook for many younger Canadians. The Canadian Bankers Association (CBA)
published a survey of Gen Z respondents in November 2021 to mark Financial Literacy Month in Canada. The research found that more than half (53 per cent) of Gen Z respondents (aged 18-25) felt the pandemic upended their financial security, with that number rising to 73 per cent for those in less stable financial situations.
The pandemic also led to a drastic decline in cash usage and created an unprecedented surge in demand for digital and contactless payments; such as Apple Pay, Square and PayPal. Millennials and Gen Z had preferred these payment tools for some time before other age groups adopted them, as cash and in-person transactions dwindled throughout the COVID era. Younger Canadians have expedited this move toward a cashless future and have cited sheer convenience as one of the main reasons for switching from cash to contactless payments.
Responding to younger consumers’ unique needs
Financial institutions that want to effectively communicate with and support these younger generations must change their usual approach. These groups are tech-savvy and peer-aware; they prioritize transparency and expect hyper-personalized solutions. Fortunately, industry professionals are coming up with innovative options and strategies. Fintech and EdTech firms are introducing leading-edge solutions that are being embraced by these generations, resulting in the subsequent adoption by their parents and older generations. To remain competitive, service providers must offer solutions to hurdles young people face. Specialized and niche fintech companies that offer bespoke solutions for those specific needs are more likely to attract and retain those important users.
Furthermore, younger populations are constantly on the lookout for tools and technologies that cater specifically to their needs. As new workforce employees and income earners, this generation spends more on education and living costs, rather than mortgages and insurance typically prioritized by older Canadians. They are also being educated on investing and cryptocurrency, in addition to saving and budgeting. Studies have shown that despite common misconceptions, most Gen Z’s have sought professional advice to broaden their financial literacy. Moreover, 81 per cent of Gen Z and 76 per cent of millennials said that the pandemic has made them want to focus more on their financial security.
Setting new standards for efficiency, convenience and user-friendliness
Modern-day consumers have access to financial transaction tools that they can use at their own pace and convenience. According to McKinsey, the use of mobile banking channels increased by 20-50 per cent just within the first few months of the pandemic. This trend is likely to continue well after the pandemic. Today’s digital payment services are designed to be efficient, feature-rich, intuitive, user-friendly, straightforward, and informative in their approach to helping users better understand and manage their money, and with a very high engagement ratio. Below are a few factors that make these tools more adaptable and popular among their users:
- Highly secure and reliable
– Users can log into their accounts at any time of the day and are not bound by bank branch operating hours. In addition, they can receive instant notifications of their transactions, and their accounts are updated in real-time.
- Information in straightforward language
– Unlike traditional banking statements and documents that confuse and intimidate customers by using industry jargon, lengthy statements, clauses and small font, digital financial solutions tend to be clear and concise.
- Interactive digital payment tools
– Users can make calculations and assessments virtually to help them understand their finances. This added personalization is often expertly designed to help users complete tasks specific to their needs.
- 24/7 live chat support – Helps users feel at ease, knowing that should any questions arise on their end related to troubleshooting or account-related matters, there will be a team of professionals to address their needs.
Access to digital payment and fintech technology fuelling financial literacy among new user groups
Mobile money services and platforms have been on the rise, bridging the digital divide and enticing new age groups. Digital transaction platforms have also proven effective in helping traditionally underrepresented groups go online and manage their funds accordingly. Digital payment technologies provide the tools and incentives for better money management, and young people are early adopters who have shown immense interest in those technologies. Innovative and forward-thinking companies have a unique opportunity to win the hearts, minds and wallets of Gen Z and millennials, while also adding value to their lives. Fintech and digital payment technology users today have unlimited access to tools that equip them with financial guidance to help them meet their financial planning goals. This type of access is how we set up these next generations for financial independence and success — financial literacy, digital tools and convenience enable today’s user to be in true control of their financial future.
VANCOUVER, B.C. – February 21, 2023 – Hero Innovation Group Inc. (“Hero” or the “Company”) (CSE: HRO) announces that it has appointed Mao Sun and Wei Shao to the Company’s Board of Directors, in place of Peter MacKay and Larry Yen who have resigned as directors. The Company also appointed Mao Sun as the Chief Executive Officer in place of Peter MacKay, who has stepped down as Chief Executive Officer and Kevin Chen as the Chief Financial Officer in place of Mao Sun who has resigned as Chief Financial Officer. Mao Sun will continue to act as the Chief Executive Officer for the Company. The Company would like to thank Mr. MacKay and Mr. Yen for their many contributions to the Company. Wei Shao Mr. Shao is the national practice group co‐leader for the China Service at Dentons Canada and specializes in international business transactions. He has extensive experience in mergers and acquisitions, corporate and project financing, complicated corporate and commercial transactions, and advising clients with respect to business negotiations, policy and regulatory matters, as well as government relations. Mr. Shao has represented Asian investors and entrepreneurs, sovereign and investment funds, private and public companies as well as major SOEs in various significant transactions in or through Canada. He has also advised Canadian and international companies in their investment in China and other parts of Asia. Mr. Shao is also an interpreter accredited by the United Nations and by the federal government of Canada. As an interpreter or consultant, he has been involved in numerous ministerial and prime ministerial meetings or negotiations between Canada and China. Kevin Chen Mr. Chen has over 20 years of experience in senior financial executive roles and his work focuses on private and public companies in the mining and technology sector. Mr. Chen began his career as an auditor with KPMG LLP and is a CPA, CMA in British Columbia with an MBA degree from Western University. About Hero Innovation Group Inc. Hero Innovation Group Inc. (formerly, Euro Asia Pay Holdings Inc.) is a developer of innovative financial solutions for the next generation of consumers. Through its flagship product, SideKickTM, introduced in 2018, the Company identified unmet needs in the market within specific demographics, such as international students in Canada, and delivered a product to address those needs. Hero Financials, the Company’s largest product, is targeted at parents, kids and young adults across Canada. With financial literacy at the forefront of the Company’s values and a plethora of advanced proprietary technology features, Hero Financials prepares kids to become financially smart adults through a variety of financial literacy tools. To learn more about Hero Group’s products and services, visit www.heroinnovationgroup.com. On behalf of the Board of Directors Mao Sun CEO and Director For further information, contact: Mao Sun CEO and Director ir@heroinnovationgroup.com
VANCOUVER, B.C. – December 19, 2022 – Hero Innovation Group Inc. (“Hero” or the “Company”) (CSE: HRO) announces that effective December 14, 2022 (the “Effective Date”), it has appointed MSLL CPA, LLP (“MSLL”), Chartered Professional Accountants, at their Vancouver offices at Suite 2110 – 1177 W. Hastings Street, to serve as the Company’s auditor. MSLL replaces Dale Matheson Carr-Hilton LaBonte LLP (“DMCL”), Chartered Professional Accountants, as the Company’s auditor. In accordance with National Instrument 51-102 - Continutous Disclosures Obligations, Hero has filed a copy of its change of auditor notice on SEDAR together with the letters from each of MSLL and DMCL in relation to the foregoing. About Hero Innovation Group Inc. Hero Innovation Group Inc. (formerly, Euro Asia Pay Holdings Inc.) is a developer of innovative financial solutions for the next generation of consumers. Through its flagship product, SideKickTM, introduced in 2018, the Company identified unmet needs in the market within specific demographics, such as international students in Canada, and delivered a product to address those needs. Hero Financials, the Company’s largest product, is targeted at parents, kids and young adults across Canada. With financial literacy at the forefront of the Company’s values and a plethora of advanced proprietary technology features, Hero Financials prepares kids to become financially smart adults through a variety of financial literacy tools. To learn more about Hero Group’s products and services, visit www.heroinnovationgroup.com. On behalf of the Board of Directors Peter MacKay CEO and Director For further information, contact: Peter MacKay CEO and Director ir@heroinnovationgroup.com
VANCOUVER, B.C. – December 14, 2022 – Hero Innovation Group Inc. (“ Hero ” or the “ Company ”) (CSE: HRO) announces that it has entered into a loan agreement amending agreement (the “ Agreement ”) dated December 13, 2022 with Morrison Homes Bridge Street Ltd. (the “ Lender ”). The Company and the Lender, a company controlled by Morris Chen, a director of Hero, are party to loan agreements dated February 8, 2022, February 24, 2022, March 8, 2022, March 31, 2022, April 6, 2022, April 27, 2022, May 11, 2022, May 26, 2022, June 16, 2022, June 30, 2022, July 21, 2022, August 10, 2022, August 23, 2022, September 21, 2022, and October 20, 2022 (collectively, the “ Loan Agreements ”), pursuant to which the Lender agreed to lend the Company up to $2,400,000, of which the Lender has advanced, in tranches, an aggregate principal amount of $2,400,000 (collectively, the “ Loan ”). The Loan Agreements from February 8, 2022 to July 21, 2022, equalling an aggregate principal amount of $1,400,000, are at an interest rate of 8% per annum. The Loan Agreements from August 10, 2022 to October 20, 2022, equalling an aggregate principal amount of $1,000,000, are at an interest rate of 15% per annum. The proceeds of the Loan have been used by the Company for general working capital purposes. Subject to the receipt of prior shareholder approval in accordance with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“ MI 61-101 ”) as well as that of the Canadian Securities Exchange (“ CSE ”), the Company and the Lender agreed to amend the terms of the Loan Agreements to provide for the convertibility of the Loan and any accrued and unpaid interest thereon into units of the Company (each, a “ Conversion Unit ”) at a conversion price of $0.08 per Conversion Unit. Each Conversion Unit will consist of one common share (each, a “ Share ”) in the capital of the Company and one Share purchase warrants (each, a “ Warrant ”), with each Warrant entitling the holder to acquire one additional Share at a price of $0.45 per Share for a period of 24 months from the date of issuance (the “ Conversion ”). Morris Chen, a director of the Company, controls Morrison and, as such, the Loan and the Agreement are considered to be a “related party transaction” as defined in MI 61-101. The issuance of the Loan to the Mr. Chen is exempt from the valuation requirement of MI 61-101 by the virtue of the exemption contained in section 5.5(b) as the Company’s shares are not listed on a specified market, however the issuance of the Loan is not exempt from the minority shareholder approval requirements of MI 61-101. As such, the Agreement and any Conversion of the Loan thereunder is subject to prior minority shareholder approval. About Hero Innovation Group Inc. Hero Innovation Group Inc. (formerly, Euro Asia Pay Holdings Inc.) is a developer of innovative financial solutions for the next generation of consumers. Through its flagship product, SideKickTM, introduced in 2018, the Company identified unmet needs in the market within specific demographics, such as international students in Canada, and delivered a product to address those needs. Hero Financials, the Company’s largest product, is targeted at parents, kids and young adults across Canada. With financial literacy at the forefront of the Company’s values and a plethora of advanced proprietary technology features, Hero Financials prepares kids to become financially smart adults through a variety of financial literacy tools. To learn more about Hero Group’s products and services, visit www.heroinnovationgroup.com. On behalf of the Board of Directors Peter MacKay CEO and Director For further information, contact: Peter MacKay CEO and Director ir@heroinnovationgroup.com Disclaimer for Forward-Looking Information This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking information in this news release includes statements regarding, but not limited to: the ability for the Company to perform its obligations under the Agreement; the receipt of applicable third party approvals of the Agreement and the Loan convertibility, including, but not limited to, minority shareholder approval and that of the CSE, and such other statements contained herein that are not purely historical in nature. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the CSE may not approve the securities issuable pursuant to the Agreement; that the requisite minority shareholders approvals may not be obtained by the parties in connection with the Conversion; and other factors beyond the control of the Company. The ongoing COVID-19 pandemic, labour shortages, inflationary pressures, rising interest rates, the global financial climate and the conflict in Ukraine and surrounding regions are some additional factors that are affecting current economic conditions and increasing economic uncertainty, which may impact the Company’s operating performance, financial position, and future prospects. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company does not undertake any obligation to update such forward-looking information whether because of new information, future events or otherwise, except as expressly required by applicable law.
