Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Jan 26): Malayan Banking Bhd expects to see a 20% growth in card merchant billing from the small and medium enterprises (SMEs) segment.

"Last year (2014), we recorded about RM10 billion of billings from SMEs, that was a 10% growth from 2013. This year, we foresee that there will be 20% growth," Maybank group head of cards, B. Ravintharan told reporters today, after the launching of a new mobile point-of-sales services, dubbed mPOS, a collaboration with Maxis Bhd.

Maybank (fundamental: 1.5; valuation: 1.3) currently has about 45,000 merchant clients, representing 36% of market share, the largest among its peers, with half of them from SMEs.

Ravintharan said the rate charges on merchants for mPOS vary among sectors, but added that it would be very low if the transaction was meant for charity.

"The standard price is probably around 1.8%, but it will vary for different business segments; if it is for charity, our charges will be much lower," he explained.

Ravintharan said transaction done via the new facility would not be charged for goods and services tax (GST).

However, for credit cards that carry annual fees, GST will be imposed upon the annual fees.

Still, Ravintharan noted that most annual fees for credit cards today were usually waived.

With mPOS, Maybank and Maxis (fundamental: 1.15; valuation: 0.9) are targeting to garner 4,000 new merchants this year.

 

      Print
      Text Size
      Share