Asia Payment Systems, Inc. (OTC Bulletin Board: APYM; "Asia Pay") today announced it has signed a Strategic Alliance agreement with Global Uplink Communications Ltd. ("Uplink"), a Chinese company based in Guangzhou, Guangdong Province.
Uplink operates a growing, successful business in the customer relationship management (CRM) and related services sector with a client base which includes financial institutions and corporations in Guangdong Province as well as other regions of China. With this alliance, Uplink and Asia Pay will cooperate in developing loyalty card programs, initially in Guangdong Province followed by other major Chinese markets.
Asia Pay and Uplink have initiated planning for a joint business development program which will soon get under way. The initial focus of this program will be to grow the existing CRM business to provide a sound foundation for a loyalty card program targeted for 2006. As a result of its existing CRM activities, Uplink will make use of the Asia Pay card and payment system to jointly provide such added-value services to existing and new customers. One such priority is the development of a card issuing program for the Chinese market. Card issuance requires participation by one or more Chinese banks, and Uplink's existing relationships in the Chinese banking sector are expected to give an important boost to this program. Partnerships with Chinese institutions are necessary for foreign companies that wish to compete for the affluent card market; and, with the Chinese banking sector opening up to foreign participation in 2007, this is a good time to be forging strategic alliances.
"We have experienced excellent growth since we established the company in 2001 and our CRM operations are profitable," said Chen Yu Hua, Director/General Manager of Uplink. "However, we believe the alliance with Asia Pay will create significant new opportunities for both companies. Utilizing Asia Pay's world-class card and payment system, experience and marketing expertise, we intend to capitalize on our strong base in Guangdong to create new customers and services."
"Our partnership with Uplink is a significant step forward for Asia Pay in China and fits well with the broadened strategic objectives that have developed as a result of our recent alliance with InterPay International," said Robert Clarke, Chairman of Asia Pay. "We gain another strong partner and access to a substantial base of future customers in China. It seems likely that the implementation of our envisaged credit card issuing program is a year or two away, but I believe the loyalty card program can be rolled-out this year. The loyalty card program will provide a stepping stone to the eventual issuance of credit cards and Uplink's banking contacts will assist us in developing the necessary relationships with Chinese banks."
Benny Lee, President of Asia Pay, added, "I have observed Uplink's business operations closely and met with their key managers. I am confident they will be very effective partners in developing our Chinese business. I look forward to working with Uplink."