RVYL RYVYL Inc

RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, licensed its payment-platform-as-a-service to a U.S. based Licensee that will deploy services nationwide for both Card Present (CP) and Card not present (CNP) transactions. Under the licensing model, RYVYL will earn revenue per transaction.

“Leveraging our core technology to build a new high margin revenue stream, we signed an exclusive U.S. license of our private label PPaaS platform, for a niche industry customer base,” said RYVYL Co-founder and CEO Fredi Nisan. “In the third quarter of 2024, we delivered a private label Instance of the product, which the licensing partner will complete API integration to its banking network by the end of Q3 and should start contributing revenue by Q4. We expect it will take time to ramp up transactions as the licensee begins to onboard their available portfolio of more than 1,000 merchants.”

At the peak, RYVYL previously processed more than a million transactions per month across its network for this vertical. While per transaction fees will be lower than those on processing volume, the company will save onboarding costs, reduce operational expense, streamline overall compliance, and eliminate payment network processing costs of revenue, thus contributing towards improving the overall company gross margin. Going forward the company will track licensing transactions separately as opposed to processing volumes for this new licensing revenue category.

Christian Murray, managing Director, and President of Northeast Merchant Systems (NEMS) stated, “In addition, we expect our licensee, with its unique footprint combined with the PPaaS solution, to be able to address U.S. market with redundant processing and banking connectivity within market. In addition, the utilization of the platform will benefit both businesses and consumers from touchless payments utilizing smartphones, multi-factor authentication, frictionless QR code payments all while streamlining the checkout process and maintaining a traditional payment experience. This would position both our licensee to earn additional revenue streams and RYVYL to increase licensing and other platform fees. Further, with the partnership, we will benefit from deploying reduced marketing, sales and support resources and drive revenues through the licensee with its access to a large network of locations and customers in North America.”

About RYVYL

RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic token technology for the diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

Cautionary Note Regarding Forward-Looking Statements

This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing and expectation of revenues from the license described herein and are characterized by future or conditional words such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee’s ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries – particularly industries with heightened cash reporting obligations and restrictions – as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company’s periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

IR Contact: David Barnard, LHA Investor Relations, 415-433-3777, RYVYL@lhai.com