GHLSYS (0021) - GHL strides forward with CIMB PSP agreement
April 27, 2015 : 9:53 AM MYT
KUALA LUMPUR: GHL Systems Bhd has made a clear statement of intent of its aggression to grow the company’s transaction payment acquisition (TPA) business last week when the end-to-end payment solutions provider signed a payment service provider arrangement (PSP) with CIMB Bank Bhd (CIMB).
This agreement will allow GHL to commence acquisition of merchants on behalf of CIMB for the next three years to accept e-payment services at point of sale (PoS) terminals. The company’s revenue from this agreement will be derived from terminal rental and a share of the merchant discount rates.
The partnership with CIMB is also a follow-up to GHL’s first PSP agreement with Global Payments Card Processing (M) Sdn Bhd, a partner of HSBC Bank Malaysia in January 2015.
Similarly, GHL is contracted by Global Payments Card Processing Malaysia Sdn Bhd to acquire merchants on its behalf in exchange for terminal rental and a share of the merchant discount rates.
Apparently, GHL would not want to have only two banks as its clients for its TPA division.
Group chief executive officer Raj Lorenz revealed that the company is in talks with other local banks for more PSP arrangements in the future
“Now we have what we wanted — a large local bank like CIMB,” Lorenz told The Edge Financial Daily after the signing ceremony.
He said the newly-formed alliance with CIMB represents the next large stride forward for GHL because it opens the payment solutions firm to CIMB’s wide local and regional footprint. “This is going to be a huge difference to us. The previous deal we announced was with Global Payments, but CIMB is a major bank with a wide spread in the small and medium enterprise market and this is exactly what we wanted,” Lorenz said.
“The strategy of the company is clearly in the TPA segment. Work for this agreement that we have signed has not started but the potential for this is massive since 90% of our population is underserved. Our expectation is that our bottom line and top line should grow significantly when we execute this properly,” he added.
A leading indicator of GHL’s success in the TPA segment will be its merchant numbers, which it hopes will be boosted to the region of 1,000 newly-acquired merchants a month by the end of the year with CIMB on its side.
Lorenz said the number is achievable because it has the reach, the scale, the technology and experience to reach merchants which other financial institutions or other competitors cannot reach profitably.
In fact, GHL (fundamental: 1.2; valuation: 0.2) has made “millions in investments” on its operation and risk systems to ensure that it is well positioned for the leading role in changing the landscape of Malaysia’s cash-dependent market into one which favours electronic transactions.
“When a merchant is small, it becomes very challenging for a bank to offer a single product. We can do that because it is our core business, we have the scale of over 50,000 points of sale and a nationwide presence. We have everything built to do this and a ready delivery system,” said Lorenz.
“Our terminals go out to very remote areas, places where terminals have never been. We have 5,000 GPRS terminals because some places do not even have phone lines. We are hitting those markets,” he added.
GHL will be focused on the execution of the Global Payments and CIMB deals and ironing out all the teething problems which may occur during the initial integration process.
With Bank Negara Malaysia (BNM) pushing banks toward the transition to a cashless society with a Payment Card Reform Framework, there will be no surprises that GHL’s services as a third-party acquirer will continue to be in demand.
Under the framework, BNM is aiming to raise the number of debit transactions from 89 million a year in 2015 to a billion transactions a year by 2020. It also wants the number of PoS terminals to grow from the current 280,000 to 800,000 by 2020.
http://www.theedgemarkets.com
April 27, 2015 : 9:53 AM MYT
KUALA LUMPUR: GHL Systems Bhd has made a clear statement of intent of its aggression to grow the company’s transaction payment acquisition (TPA) business last week when the end-to-end payment solutions provider signed a payment service provider arrangement (PSP) with CIMB Bank Bhd (CIMB).
This agreement will allow GHL to commence acquisition of merchants on behalf of CIMB for the next three years to accept e-payment services at point of sale (PoS) terminals. The company’s revenue from this agreement will be derived from terminal rental and a share of the merchant discount rates.
The partnership with CIMB is also a follow-up to GHL’s first PSP agreement with Global Payments Card Processing (M) Sdn Bhd, a partner of HSBC Bank Malaysia in January 2015.
Similarly, GHL is contracted by Global Payments Card Processing Malaysia Sdn Bhd to acquire merchants on its behalf in exchange for terminal rental and a share of the merchant discount rates.
Apparently, GHL would not want to have only two banks as its clients for its TPA division.
Group chief executive officer Raj Lorenz revealed that the company is in talks with other local banks for more PSP arrangements in the future
“Now we have what we wanted — a large local bank like CIMB,” Lorenz told The Edge Financial Daily after the signing ceremony.
He said the newly-formed alliance with CIMB represents the next large stride forward for GHL because it opens the payment solutions firm to CIMB’s wide local and regional footprint. “This is going to be a huge difference to us. The previous deal we announced was with Global Payments, but CIMB is a major bank with a wide spread in the small and medium enterprise market and this is exactly what we wanted,” Lorenz said.
“The strategy of the company is clearly in the TPA segment. Work for this agreement that we have signed has not started but the potential for this is massive since 90% of our population is underserved. Our expectation is that our bottom line and top line should grow significantly when we execute this properly,” he added.
A leading indicator of GHL’s success in the TPA segment will be its merchant numbers, which it hopes will be boosted to the region of 1,000 newly-acquired merchants a month by the end of the year with CIMB on its side.
Lorenz said the number is achievable because it has the reach, the scale, the technology and experience to reach merchants which other financial institutions or other competitors cannot reach profitably.
In fact, GHL (fundamental: 1.2; valuation: 0.2) has made “millions in investments” on its operation and risk systems to ensure that it is well positioned for the leading role in changing the landscape of Malaysia’s cash-dependent market into one which favours electronic transactions.
“When a merchant is small, it becomes very challenging for a bank to offer a single product. We can do that because it is our core business, we have the scale of over 50,000 points of sale and a nationwide presence. We have everything built to do this and a ready delivery system,” said Lorenz.
“Our terminals go out to very remote areas, places where terminals have never been. We have 5,000 GPRS terminals because some places do not even have phone lines. We are hitting those markets,” he added.
GHL will be focused on the execution of the Global Payments and CIMB deals and ironing out all the teething problems which may occur during the initial integration process.
With Bank Negara Malaysia (BNM) pushing banks toward the transition to a cashless society with a Payment Card Reform Framework, there will be no surprises that GHL’s services as a third-party acquirer will continue to be in demand.
Under the framework, BNM is aiming to raise the number of debit transactions from 89 million a year in 2015 to a billion transactions a year by 2020. It also wants the number of PoS terminals to grow from the current 280,000 to 800,000 by 2020.
http://www.theedgemarkets.com
