KUCHING: GHL Systems Bhd (GHL Group) is leveraging on more transaction payment acquisition (TPA) arrangement to further generate higher turnover and earnings for the company.
The research arm of CIMB Investment Bank Bhd (CIMB Research) in a report yesterday said the latest TPA arrangement which the group has entered into through its subsidiary in the Philippines will enable GHL Group to drive its future earnings growth.
Meanwhile, GHL Group told Bursa Malaysia on Dec 16 that its subsidiary GHL Systems Philippines Inc (GHL Philippines) has signed an agreement to commence operations to acquire merchants under a TPA arrangement with Philppine-based Omnipay Inc, a non-bank financial institution specialising in payment cards.
GHL Group in a press statement said the collaboration with Omnipay marked GHL Philippines’ entry into the direct merchant acquisition business, consolidating its position as the leading point-of-sales (POS) payment services provider to merchants in the Philippines.
GHL Group chief executive officer (CEO) Raj Lorenz said, “I am delighted with these initiatives in the Philippines as this fits in perfectly with GHL Group’s strategy of growing the TPA business right across ASEAN.
“We also expect to conclude a TPA arrangement in Malaysia soon. In addition, it enables GHL Philippines to serve the national interest of replacing cash payments with e-payments and also assists in the financial inclusion agenda via the acceptance of prepaid cards” Lorenz said.
Similarly, GHL Group added initially, GHL Philippines is targeting to sign-up between 300 to 500 merchants per month to accept payments using Unionpay cards and/or JCB cards.
It added GHL Philippines intends to double the acquisition rate towards the end of 2015.
At present, GHL Group observed that Omnipay has issued 2.7 million prepaid cards branded Unionpay and JCB with plans to issue six to eight million new cards in 2015.
The company believes that the Philippine market with its 100 million population holds great potential for the provision of electronic payment services via debit, credit and prepaid card payments.
At present, it noted the marginally banked or unbanked segment in the Philippines is mostly addressed through prepaid cards.
GHL Group observed that there are an estimated 27 million prepaid cards issued at present compared to eight million credit cards.
Additionally, it said there are an estimated 150,000 Electronic Data capture (EDC) terminals nationwide that accept all payment cards used by Philippine consumers.
Furthermore, Omnipay’s CEO Simoun Ung said, “Omnipay has always focused on the card issuing side of the business, an area in which we have been very successful.
“The TPA arrangement with GHL Philippines increases the acceptance points for our cardholders and enables each party to focus on our respective strengths” Ung added.
Hence, CIMB Research is optimistic about the company’s new venture by leveraging on TPA arrangement to further enhance its financial performance.
The research firm believes that stronger earnings from TPA and merger and acquisition activities in new markets are potential catalysts to further fuel growth for the group.