KUALA LUMPUR (Jan 27): Partnering Global Payments Card Processing Malaysia Sdn Bhd, GHL Systems Bhd has launched its payment facilitator (PF) and payment service provider (PSP) initiative in Malaysia, with an initial target to acquire 3,000 to 4,000 merchants this year.

Payment solutions provider GHL Systems (fundamental: 1.40; valuation: 0.30) said in an announcement with Bursa Malaysia today that its wholly-owned subsidiaries GHL Cardpay Sdn Bhd and GHL Epayments Sdn Bhd have each entered into an agreement with Global Payments, whereby they will act as PF and PSP to the latter.

Under the agreements, GHL Systems will provide services on behalf of Global Payments Malaysia, including to acquire eligible new merchants by providing sales, marketing and on-boarding services.

Additionally, GHL Systems will facilitate transactions and settlement of funds between Global Payments Malaysia and the new merchants.

“This agreement marks GHL group’s launch into its banking PF/PSP initiative in Malaysia, and will enable GHL group to grow its presence in the cashless payment environment in Malaysia,” it said.

The group also said it expects the merchant acquisition activity to increase towards the end of 2015.

“This deal paves the way for GHL group to enter the small merchant segment,” said its chief executive officer Raj Lorenz in a statement.

He noted that the PF/PSP agreement with Global Payments Malaysia will allow GHL to directly contract with small merchants, for credit card payment services.

“This not only serves the national interest of broadening the card acceptance footprint, but also helps fulfil the payment needs of smaller SME customers,” Raj added.

GHL Systems ended 1.29% lower at 76.5 sen today, giving it a market capitalisation of RM489.9 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)