KUALA LUMPUR (July 24): CIMB Group Holdings Bhd's subsidiary Touch 'n Go has entered into an equity joint venture (JV) with Alipay, a subsidiary of Ant Financial Services Group to launch a new mobile e-wallet platform for payments and other related financial services in Malaysia.

In a statement to Bursa Malaysia today, CIMB group chief executive officer Tengku Datuk Seri Zafrul Aziz said this is a landmark deal, premised on a clearly synergistic partnership.

"Touch 'n Go's leading position combined with Ant Financial's Alipay capabilities will allow all Malaysians to participate and access secure payments and digital financial services for the long term.

"This fits nicely with CIMB's digital aspirations and our FinTech agenda, as we move towards a more inclusive and digitised Malaysia," he said.

With the new e-wallet, it will give current and new Touch 'n Go users access to more services conveniently on their mobile phones, including for e-commerce.

Meanwhile, Alipay users can enjoy cashless transactions outside China.

Users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make doctors' appointment, purchase wealth management products and manage their finances.

In addition, Ant Financial is enabling local partners in India, South Korea and Southeast Asia to provide digital payment and innovative financial services to local users.

"To bring digital financial inclusion to more people across the world, Ant Financial takes an approach of collaborating with strategic partners overseas and enabling them with its innovative solutions," said Ant Financial CEO Eric Jing.

Jing said along with the launch of the JV, individuals as well as small-medium enterprises (SMEs) will be able to benefit from the development of the technology.

"They will be able to purchase or do business in a more convenient and efficient way in both domestic and international markets, enjoying a broader range of services," he added.

Touch 'n Go will participate as a majority shareholder while Alipay will be a minority shareholder.

CIMB highlighted that the capital injected by both parties will go towards the creation of a world-class online and offline payments provider, delivering superior mobile wallet solutions and other related financial services.

"The JV transaction is subject to closing conditions and the required regulatory approvals," it said.

At the midday break today, CIMB shares remain unchanged at RM6.35 with 2.26 million shares changing hand, giving the group a market capitalisation of RM57.57 billion.