KUALA LUMPUR, July 24 (Xinhua) -- Malaysia's second largest bank CIMB joined hands with Ant Financial, an affiliate company of Chinese e-commerce giant Alibaba, on Monday to cater to local mobile payment demands.
CIMB's electronic payment system subsidiary Touch 'n Go entered into an equity joint venture (JV) with Alipay, CIMB said 0in a statement.
The JV will see Touch 'n Go to be the major shareholder in the venture while Ant Financial as a minority shareholder, according the statement. CIMB said it is Ant Financial's first investment in Malaysia but did not elaborate on the value of the deal.
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, it said.
"Along with the launch of the JV, individuals as well as small- to medium-sized enterprises (SMEs) 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, Ant Financial Services' CEO.
"Touch 'n Go's leading position combined with Ant Financial's Alipay capabilities will allow all Malaysians to participate and access secure payments and digital financial services for the long term," said CIMB's CEO Zafrul Aziz.
Currently, millions of users across Malaysia use Touch 'n Go cards daily for electronic payment purposes at toll roads, public transportation systems, parking and retail outlets. The new e-wallet will give current and new Touch 'n Go's users access to more services conveniently, on their mobile phones, including online-shopping.
A single purchase
