OLB GROUP, INC. : Management’s Discussion and Analysis of Financial Condition and

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Forward-Looking Statements

The information in this report contains forward-looking statements. All
statements other than statements of historical fact made in this report are
forward looking. In particular, the statements herein regarding industry
prospects and future results of operations or financial position are
forward-looking statements. These forward-looking statements can be identified
by the use of words such as “believes,” “estimates,” “could,” “possibly,”
“probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should” or
other variations or similar words. No assurances can be given that the future
results anticipated by the forward-looking statements will be achieved.
Forward-looking statements reflect management’s current expectations and are
inherently uncertain. If underlying assumptions prove inaccurate or unknown
risks or uncertainties materialize, our actual results may differ significantly
from management’s expectations. These risks and uncertainties include those
factors described in greater detail in the risk factors disclosed in our Form
10-K for the fiscal year ended December 31, 2020 filed with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect, actual results
may vary in material respects from those anticipated in these forward-looking
statements. The Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required under applicable securities laws.

You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this Quarterly Report on Form
10-Q or, in the case of documents referred to or incorporated by reference, the
date of those documents.

The following discussion and analysis should be read in conjunction with our
unaudited financial statements, included herewith. This discussion should not be
construed to imply that the results discussed herein will necessarily continue
into the future, or that any conclusion reached herein will necessarily be
indicative of actual operating results in the future. Such discussion represents
only the best present assessment of our management.

Company Overview and Description of Business

We were incorporated in the State of Delaware on November 18, 2004 for the
purpose of merging with OLB.com. The merger was done for the purpose of changing
our state of incorporation from New York to Delaware. In April 2018, we
completed an acquisition of substantially all of the net assets of Excel and its
subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance
Processing, Inc. (such assets are the foundation of our eVance business). In May
2018, we entered into share exchange agreements with Crowdpay and Omnisoft,
affiliate companies of our company’s majority stockholder, pursuant to which
each of Crowdpay and Omnisoft became solely owned subsidiaries of our Company.
Our Company’s headquarters is located at 200 Park Avenue, Suite 1700, New York,
NY 10166. Our telephone number is (212) 278-0900.

We are a FinTech company and PayFac that focuses on a suite of products in the
merchant services and payment facilitator verticals that seeks to provide
integrated business solutions to merchants throughout the United States. We seek
to accomplish this by providing merchants with a wide range of products and
services through our various online platforms, including financial and
transaction processing services. We also have products that provide support for
crowdfunding and other capital raising initiatives. We supplement our online
platforms with certain hardware solutions that are integrated with our online
platforms. Our business functions primarily through three
wholly-owned subsidiaries, eVance, OmniSoft, and CrowdPay, though substantially
all of our revenue has been generated from our eVance business (we began
generating revenue from our OmniSoft and CrowdPay businesses in the second half
of 2019). We expect to build out our OmniSoft software business and to rely more
on our PayFac model for revenue so that we are not dependent on our revenue from
our eVance business but there is no guarantee that we will be able to do so.

With respect to our eVance business, our merchants are currently processing over
$82,000,000 in gross transactions monthly and average approximately 1,400,000
transactions a month. These transactions come from a variety of sources
including direct accounts and ISO channels. The accounts consist of businesses
across the United States with no concentration of industries or merchants.

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We have integrated all the applications for OmniSoft and the ShopFast
Omnicommerce solution with the eVance mobile payment gateway, SecurePay.comTM.
SecurePay.comTM, is currently used by approximately 3,000 merchants processing
over 32,000 transactions and approximately $9,000,000 of monthly gross
transactions (though our revenue from these transactions is limited). In July
2019, we launched a new merchant and ISO boarding system that will be able to
onboard merchants instantly. This will provide the merchant with an automated
approval and ISOs will have the ability to see all their merchants and their
residuals as they load to the system.

On May 22, 2020, the Company purchased certain assets from POSaBIT Inc.
(“POSaBIT”), including its contracts and arrangements with the Doublebeam
merchant payment processing platform (the “POSaBIT Asset Acquisition”). The
assets included, but were not limited to, software source codes, customer lists,
customer contracts, hardware and website domains. The total purchase price was
$215,000 (the “Purchase Price”) following post-closing adjustments.

On May 14, 2021, the Company formed OLBit, Inc., a wholly owned subsidiary
(“OLBit”). The purpose of OLBit is to hold the Company’s assets and operate its
business related to cryptocurrency-related lending and transactional business.

On July 23, 2021, the Company formed DMINT, Inc., a wholly owned subsidiary
(“DMINT”). The purpose of DMINT is to operate its business related to
cryptocurrency mining DMint has initiated the first phase of the cryptocurrency
mining operation by placing purchase orders for data centers and ASIC-based
Antminer S19J Pro mining computers specifically configured to mine Bitcoin. The
first lot of equipment will be used to establish a proof of concept before DMint
expands the number of computers in operation. As configured, it is expected that
the computers purchased will have a combined computing power of approximately
100 petahash per second. If the initial mining operation results are as
anticipated, DMint plans to expand the number of mining computers every quarter,
whereby it would potentially have the computing power of 500 petahash per second
by the end of 2022.

The Company has also signed a non-binding letter of intent to acquire a
portfolio of CBD and other merchants that will utilize the Company’s SecurePay
Payment Gateway to process payments. The group of merchants to be acquired have
reported annual transaction volume of greater than $300 million. The transaction
is anticipated to add an accomplished and experienced sales channel to the OLB
team, enabling further penetration into this growing sector in the United
States. The transaction is expected to close in the fourth quarter of 2021
however there can be no assurance that the company will close this acquisition.

Results of Operations

Management’s discussion and analysis of financial condition and results of
operations (“MD&A”) includes a discussion of the consolidated results from
operations of The OLB Group, Inc. and its subsidiaries for the three and six
months ended June 30, 2021 and 2020.

Three Months Ended June 30, 2021 Compared to the Three Months Ended June 30,
2020

For the three months ended June 30, 2021, we had total revenue of $2,833,572
compared to $2,000,035 of revenue for the three months ended June 30, 2020, an
increase of $833,537 or 41.7%. We earned $2,666,049 in transaction and
processing fees, $46,896 in merchant equipment rental and sales and $120,627 in
other revenue during the three months ended June 30, 2021, compared to
$1,831,896 in transaction and processing fees, $18,548 in merchant equipment
sales and $149,591 in other revenue during…

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