In another step to expand its global footprint and promote financial inclusion, Ant Financial Services Group on July 24 announced it’s entering into an equity joint venture with CIMB Group Holdings Berhad subsidiary Touch ‘n Go Sdn Bhd (TNG).
The JV will introduce a “world-class mobile platform for payments and other financial services,” the companies said.
TNG will be the majority shareholder and Ant Financial a minority shareholder. This is Ant Financial’s first investment in Malaysia. The JV transaction is subject to closing conditions and the required regulatory approvals.
Millions of users across Malaysia use TNG cards daily for electronic payment at toll roads, public transit systems, parking and retail outlets. The new e-wallet will give current and new TNG users access to more services on their mobile phones including for e-commerce, the companies said.
Ant Financial provides digital financial services to more than 520 million users in China and beyond, largely through its Alipay app. The company is working with local partners in India, South Korea and Southeast Asia to provide digital payment and financial services to local users. And in April, Ant Financial won MoneyGram board approval to buy the U.S.-based remittance giant for $1.2 billion.
“Along with the launch of the JV, individuals as well as SMEs will be able to benefit from the development of technology. They will be able to purchase or do business in a more convenient and efficient way in both domestic and international markets, enjoying a broader range of services,” said Eric Jing, CEO, Ant Financial. “To bring digital financial inclusion to more people across the world, Ant Financial takes an approach of collaborating with strategic partners overseas and enabling them with its innovative solutions. Given TNG’s leading position in the market and vast customer base, we believe that we can help it to offer exciting and innovative products to Malaysian consumers.”
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