THE COMPANY’S POTENTIAL INABILITY TO KEEP PACE WITH RAPID TECHNOLOGICAL DEVELOPMENT TO OFFER NEW PRODUCTS AND SERVICES AND IMPROVE OR PROPERLY MODERNIZE ITS INFORMATION TECHNOLOGY INFRASTRUCTURE AND INFORMATION MANAGEMENT SYSTEMS IN A TIMELY MANNER MAY RESULT IN A MATERIAL ADVERSE EFFECT.
The Company’s ability to remain competitive depends, in part, on its ability to modernize its information technology in a timely and effective manner.
The means of payment market evolves rapidly in an attempt to keep up with the changing expectations of recipient end users (merchants) and paying end users (holders of payment instruments), as well as technological advances. The Company’s ability to remain competitive depends, in part, on its ability to meet demands for technological solutions in a timely and effective manner. New payment method trends are emerging in association with new technologies, for example, use of mobile telephony features, use of payment cards tokens, capture by QR Code, social commerce (e-commerce through social networks), authentication, virtual currencies and blockchain technologies, near-field communication (NFC) and other near field or contactless payment methods, virtual reality, machine learning, and artificial intelligence methods, among others. In the event the Company experiences difficulty in perceiving market demands or is unable to build strategic partnerships to adequately meet its needs and its market vision, its business may be adversely affected.
Furthermore, the Company cannot guarantee that in the future it will be able to maintain the level of capital investment required to stimulate and/ or continue to modernize its information technology infrastructure, and in this case its ability to meet market demands would be impaired. The lack of investments or insufficient investments may affect its ability to process and store data, thus preventing the origination of new business and customers and maintenance of existing customers. The Company may even be unable to guarantee information security both for itself and its customers, and this may have a material adverse effect on its business, financial condition or results of operation.