MobilityOne (AIM: MBO), the e-commerce infrastructure payment solutions and platform provider, announces that its wholly-owned subsidiary in Malaysia, MobilityOne Sdn Bhd, has entered into an Alipay service contract with Alipay.com Co., Ltd (“Alipay”) to offer Alipay’s payment acceptance service to MobilityOne’s merchants in Malaysia (the “Agreement”).
Alipay is one of the largest mobile and online payment platforms globally and is part of the Alibaba Group Holding Limited, a Chinese multinational technology company specialising in e-commerce, retail, internet and technology.
The Agreement will enhance MobilityOne’s e-payment capabilities whereby MobilityOne’s merchants can accept Alipay transactions via online and offline channels from digital wallets which have stored value operated by Alipay. MobilityOne intends to, via an e-platform, provide payment processing, authorisation and settlement services to its merchants who provide goods and services directly to Alipay users to enable such merchants to accept payments from Alipay users.
Whilst the Company is pleased to announce the Agreement as it validates its present strategy, the Board confirms that there is no immediate revenue contribution or earnings impact to the Group as a result of the Agreement with Alipay. There are no fees payable upfront to the Group in respect of this Agreement. The Group will generate revenue from this Agreement through a percentage of the service fee to be charged to the merchants based on the amount of each successful Alipay transaction and after deducting Alipay’s share of the service fee, to be calculated on a monthly basis.
The Board is hopeful that the Agreement with Alipay will contribute positively to the Group’s outcome in the financial year ending 31 December 2021 and beyond as the Group intends to deploy this service to the market by the end of this year. As such, management expectations for the Group’s performance in the current financial year remain unchanged. At this stage there can be no guarantee that the Agreement with Alipay will have a material impact on the Group’s future trading or financial performance as it is dependent on, inter alia, the overall global economic situation and the status of the competitive landscape .
Dato’ Hussian A Rahman, CEO of MobilityOne, commented: “It is pleasing to see that our on-going efforts to partner with global companies to offer our services are coming to fruition. Even though this new service with Alipay will not have any immediate impact to our revenue or earnings we are confident on its contribution to our future growth prospects.”
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