Q1 FY27 highlights: receipts up ~15x as P2M scales on Peppermint’s licensed rails
In its Q1 FY27 quarterly report for the period ended 30 September 2026, Peppermint Innovation Ltd (ASX:PIL) recorded receipts from customers of A$1.18 million, up about 15x from A$78,000 in the June quarter. Net cash used in operating activities fell 55% to A$287,000 (June quarter: A$643,000).
The company attributed the result to the commercial scale-up of its QR Ph Person-to-Merchant (P2M) payment processing business. Key figures from the quarter:
- Peppermint Bizmoto Inc. (PBI) gross revenue of ₱48.2 million (June quarter: ₱2.2 million)
- September P2M deposits processed of ₱4.51 billion
- 94 direct merchants at quarter end
- 11 Operators of Payment Systems (OPS) partners managing 225 indirect merchants
For investors, the partner-led model is now visible in cash flow, with receipts covering all direct costs of sales during the quarter.
Chris Kain, Managing Director and CEO
“The September quarter is the quarter our business model proved itself…”
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P2M performance after the Java migration
Throughput and scale
On 7 August 2026, Peppermint began migrating P2M merchants from its legacy PHP framework to a new enterprise-grade Java architecture. All legacy PHP direct merchants were subsequently transitioned to the new platform during the quarter.
P2M network transactions grew 4.2x from 2.74 million in August to 11.53 million in September. September deposits averaged ₱150.2 million per day, with all 30 days above ₱100 million.
The single-day deposit record was reset four times during the quarter, most recently to ₱190.5 million on 30 September.
Reliability metrics
The company reported the following network metrics against its targets.
| Metric | August 2026 | September 2026 | Target |
|---|---|---|---|
| Approval rate | 99.84% | 99.87% | Min. 96.00% |
| Timeout ratio | 0.0496% | 0.0064% | Max. 1.00% |
| Network timeout errors | 1,620 | 744 | n/a |
Network timeout errors fell 54% despite a fourfold increase in transactions.
Partner-led distribution
Merchant onboarding time was cut from seven days to two. The top three OPS partners account for 59 of the 225 indirect merchants (26%).
Under the partner-led strategy, OPS partners, network aggregators and direct merchants access Peppermint’s regulated payments infrastructure, including its Electronic Money Issuer (EMI) licence and direct participation in the Philippines’ national payment rails. The platform is directly connected to InstaPay, QR Ph and PESONet.
Financial results and cash position
PBI’s growth flowed directly into the Appendix 4C cash flows, summarised below.
| A$’000 | June 2026 quarter | September 2026 quarter | Change |
|---|---|---|---|
| Receipts from customers | 78 | 1,176 | +1,408% |
| Direct cost of sales / operating costs | (47) | (889) | Volume related |
| Staff costs | (400) | (322) | -20% |
| Administration and corporate costs | (274) | (251) | -8% |
| Net cash used in operating activities | (643) | (287) | -55% |
Receipts covered all direct costs of sales, with the remaining A$287,000 contributing to around half of the company’s staff and corporate overheads. Combined staff and administration costs fell 15% to A$573,000.
The A$287,000 outflow was the lowest quarterly operating cash outflow ever reported by the company.
Cash and cash equivalents at 30 September 2026 were A$438,000. During the quarter, the company received A$151,000 from equity securities issued to its established Philippines based payments sector partners, who exercised their pro-rata equity issue rights. It also drew a A$150,000 short-term loan from Chill Investments Pty Ltd at 8% per annum.
The partners exercising their pro-rata equity issue rights follows the earlier A$2.1 million strategic investment from Philippine payment sector companies, which backed Peppermint’s EMI licence and live connectivity to national payment rails.
Appendix 4C item 8.5 shows 1.5 estimated quarters of funding available. The company stated it traded cash flow positive in October, which it expects to continue, and that it expects to maintain a positive cash flow state for the December 2026 quarter.
Expenditure for the quarter included:
- Direct cost of sales: A$889,000, associated with processing P2M payment volumes
- Administration and corporate costs: A$251,000, including ASX fees, audit fees, legal fees, share registry fees and rent
- Remuneration: A$322,000, covering all 35 staff and consultants and directors’ remuneration
- Payments to related parties: A$136,000, included in Item 6.1 of the Appendix 4C
How digital payment rails work: P2M explained
Person-to-Merchant (P2M) payments let a customer pay a business directly by scanning a QR code with a wallet or banking app. QR Ph is the Philippines’ national QR standard, while InstaPay and PESONet are the national rails that move the money. InstaPay handles transfers up to ₱50,000, and PESONet clears larger settlements.
An Operator of Payment Systems (OPS) is a registered entity that brings merchants onto a payments platform. Licensed rails let partners bring merchants without building their own infrastructure, so volume can scale while fixed costs stay contained.
October momentum and new partner agreements
Preliminary, unaudited data for 1 to 21 October 2026 showed P2M deposits of ₱8.20 billion, already 1.8x September’s full-month ₱4.51 billion. Network transactions reached 19,301,656, with an approval rate of 99.82% and a timeout ratio of 0.0389%.
These figures are drawn from daily InstaPay operations data, have not been reconciled or audited, and may change.
1 October set an all-time daily high of ₱500.7 million in P2M deposits, the day two new OPS partners and two direct merchants went live. The week of 12 to 18 October was the largest on record at ₱2.81 billion.
Peppermint also expanded its partner network after quarter end:
- Manny Pay: On 13 October 2026, Peppermint signed a memorandum of understanding with Manny Pay, a BSP-registered Operator of Payment Systems, for a strategic partnership to expand QR Ph digital payments across the Philippines.
- ARX (Asian Regulatory Xchange): On 14 October 2026, PBI signed a merchant payment services agreement with ARX. Peppermint’s QR Ph P2M settlement framework will be integrated into ARX’s payment orchestration layer.
What happens next for Peppermint
The company outlined the following upcoming milestones:
- ASX reinstatement: On 23 October, the company received an ASX letter stating the ASX intended to reinstate PIL securities to official quotation upon satisfaction of certain conditions precedent, including a Prospectus and an Independent Experts Report on the company’s working capital and condition for the next 12 months. The company is addressing these conditions.
- PCM cooperative pilot: P2M merchant payments are to be piloted within Pinoy Coop Mobile (PCM) cooperative networks from the December quarter, supported by the Peppermint Pay static QR solution.
- PLDT MPLS link: A dedicated link is targeted for full operation in the last week of October 2026.
- December 2026 quarter results: Revenue and cash flows will be reported in the next quarterly report.
- Loan repayment: The Chill Investments loan is repayable on the earlier of five months, five business days after completion of an equity raising of up to A$750,000, or a change of control of the company.
Other operational points from the report:
- PCM divergence: The non-Tagum footprint delivered solid growth in registered and active users, while activity in the more mature Tagum base softened.
- Fraud management system: Development is under way, with the core P2P service layer in user acceptance testing.
- Security: Preliminary gap assessments have commenced as the first step towards PCI-DSS compliance.
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