Ancom to partner MPay to offer e-payment services to China tourists

This article first appeared in The Edge Financial Daily, on May 4, 2017.
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KUALA LUMPUR: Ancom Bhd is planning to collaborate with ManagePay Systems Bhd (MPay) to offer electronic payment (e-payment) services to promote the local tourism sector to Chinese tourists.

In a filing yesterday, Ancom said it had entered into a term sheet with MPay, which outlined the parties’ intention to set up a joint venture (JV) company for this purpose, leveraging MPay’s capabilities to operate e-payment systems and merchant aggregator

business.

It added that MPay also possessed the necessary electronic commerce marketplace development technology and capability to power a business-tobusiness-to-consumer (B2B2C) travel portal for the Malaysian travel and entertainment industry.

Ancom said the portal could serve as a platform to promote travel-related products and services for tourists, especially those from China.

“The proposal will enable the company to expand its earnings base and diversify into a new business,” said the

group.

Under the agreement, MPay will provide its expertise and resources to assist the JV company in obtaining the required licence from the local authority and approval from the merchant. MPay will also set up a complete system for the project.

Meanwhile, Ancom will assist in obtaining the required approvals as well as to propose the B2B2C travel portal to the Malaysian Tourism Board.

It said the term sheet, effective from yesterday, will be in force for a three-month period, upon the expiry of which it will be automatically renewed for another three months. The term sheet will lapse if the parties do not execute a JV agreement before the extended period ends.

Ancom fell two sen or 2.44% to close at 80 sen, giving it a market capitalisation of RM172.14 million.