MEC Inc (OTCMKTS:MYEC) shares popped 2.27% higher on Friday to $0.00900 and stayed flat in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.02. The company has a market cap of $47.42 million at 4.31 billion shares outstanding.
MEC Inc is a cloud banking and electronic payments technology developer, services provider and systems licensor. As such, it offers solutions that include real-time check authorization, payment guarantee, check image creation, and clearing and complete online reporting. The company acts as a data processor for its customers and receives transactional data from its customers, and uses the technology to format the data into Check 21 files, and transfer the files to a bank for clearing.
Last week, MEC Inc announced that it entered into agreements with pan-African financial services group, United Bank for Africa for an email-based billing and payment service called EmailMoni. This is the world’s latest fintech development for cloud banking and social payments, providing a convenient and highly accessible application with multiple ways to transact that are instant, secure, and low cost.
In particular, EmailMoni allows people and businesses to securely send and receive invoices and money electronically in real-time, using their mobile phone or any web browser compatible device. Through this, users can send and request and receive money using the mobile phone app, Microsoft Outlook app, or any email service, as well as other methods such as Facebook and SMS.
EmailMoni will be instrumental in the positive transformation of Africa to a digital banking system and enable greater access to secure commerce. EmailMoni focuses on the banks’ customers making sure they can access their money anywhere and anytime. EmailMoni enables UBA’s customers to communicate just like using email and pay for all their transactions in one place. MEC along with our sales partner in Africa, Centric Gateway, Nigeria, Limited, are committed to providing industry leading technology and service to support UBA in meeting their e-payment goals,” said Ed Starrs, CEO of MEC Inc.
With that, EmailMoni can spark a significant change in the payment landscape of Africa. Yinka Adedeji, Divisional Head, Digital Banking, UBA said that the service offered by MEC Inc is in line with their desire to continuously deliver innovative and convenient payment options to their customers. UBA has a customer base of over 10 million, which represents a large market for EmailMoni. In addition, the bank has significant market share and operations in 19 different African countries and business offices in New York, Paris and London.
A look at the daily chart of MEC Inc shares shows a bit of a double bottom formation, with the neckline at $0.01. A break past this resistance level could open the stage for more upside opportunities on MYEC stock, possibly until the next ceiling at $0.02. Volume is still subdued though, which suggests that investors are waiting for more details on how the EmailMoni offering can support MEC Inc revenues.
On the flip side, a disappointing turnout for the company’s EmailMoni product could allow the near-term ceiling at $0.01 to hold and push the stock back to its previous lows, keeping it inside the range until a stronger catalyst emerges or volume picks up. Earlier in the year, the company changed its name from MyEcheck Inc to tap into the larger payments market, apart from catering to payment processing needs of numerous different banking institutions such as Bank of America and Chase among others.
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