CIMB’s subsidiary, Touch ‘n Go (TNG) will be collaborating with Alipay to launch a new mobile e-wallet platform for cashless payments and other related financial services in Malaysia. Yesterday, both parties entered into an investment agreement to set up a joint venture (JV) entity to be incorporated in Malaysia.

In the JV, TNG will be the majority shareholder while Alipay will be the minority shareholder. CIMB’s group chief executive officer (CEO) Tengku Datuk Seri Zafrul Aziz told Bursa Malaysia yesterday that the joint venture will be a landmark deal, premised on a clearly synergistic partnership.

The new e-wallet will offer TNG’s existing and new users access to more services conveniently on their mobile phones, including for e-commerce. Meanwhile, Alipay users can enjoy cashless transactions outside China. TNG’s CEO, Syahrunizam Samsudin said that currently the platform is undergoing several evaluation processes before it could be introduced to public. TNG is aiming to replicate the success of Alipay in China because TNG already has its foundation and various businesses in Malaysia.

According to The Edge Market (24 July), CIMB highlighted that the capital injected by both parties will go towards the creation of a world-class online and offline payments provider, delivering superior mobile wallet solutions and other related financial services.

Source: Macquarie Research - 25 Jul 2017