Payment processing technology provider Mint Payments Limited (ASX:MNW) (“Mint” or “the Company”) is pleased to announce that its wholly owned subsidiary, Mint Payments Asia Pte Ltd has signed a Heads of Agreement with United Overseas Bank (Malaysia) Bhd (“UOBM”), one of the largest business and commercial banks in Malaysia.
UOBM is part of the UOB Group, being the third largest bank in South East Asia and having a strong presence in Singapore, Malaysia, Indonesia, Thailand and China.
Mint will supply and provide its payment systems, services and hardware to UOBM, delivering a fully compliant and all-in-one multi-channel payment solution. UOBM has agreed to a minimum monthly order commitment upon commencement of the payments service provided by Mint. Additionally UOBM have agreed to pay Mint monthly software and terminal activation fees, hardware and transaction fees over an initial three year term, with an option to renew on an annual basis thereafter.
Mint’s payment solution is a strategic initiative for UOBM as it shall assist the bank to meet its obligations to Bank Negara Malaysia’s (the Reserve Bank of Malaysia) payment card reforms established in 2015. As part of these reforms, Bank Negara Malaysia is seeking to significantly grow Malaysia’s card payment acceptance base from its estimated current base of 350,000 to 800,000 card payment acceptance points or terminals by 2020.
Malaysia is a strategic extension from Mint’s operations in Singapore. The Company views this regulatory change as an opportunity for proven, established payment solutions, such as Mint’s range of mPOS and online payment solutions.
The execution of a Master Services and License Agreement, formalising the commercial terms agreed in the Heads of Agreement, is exepcted to be agreed with UOBM and executed by the 31st of March 2018.
Mint’s CEO, Alex Teoh, stated: “This Heads of Agreement is a significant milestone for the Company, as it continues to execute its strategy of growing Mint’s presence in key markets in South East Asia. Malaysia is a large and strategic market opportunity, particularly due to the rapid adoption of smartphones, the growth in online businesses and Bank Negara’s Payment Card Reforms which are aimed at reducing the cash economy and providing greater transparency and accountability for the nation’s economy,”
“We are pleased to be able to partner with a bank as established as UOBM in Malaysia, and look forward to building this relationship in the region” Mr. Teoh added.