TNG, Ant financial to form JV

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KUALA LUMPUR: CIMB Group Holdings Bhd (CIMB) and its subsidiary, Touch ‘n Go Sdn Bhd (TNG), will enter into an equity Joint Venture (JV) with Ant Financial Services Group (Ant Financial), to promote innovative and digital financial services in Malaysia.

In a filing with Bursa Malaysia, CIMB said TNG and Ant Financial yesterday signed definitive agreements towards the formation of a JV.

TNG will be the majority shareholder and Ant Financial a minority shareholder.

“The JV will leverage the respective partners’ local market insights, technology capabilities, market experience, and brands to introduce a world-class mobile platform for payments and other financial services.

“This supplements Malaysia’s efforts in accelerating the creation of a robust and secure digital payment infrastructure,” CIMB added.

Ant Financial is the parent company of Alipay, a third-party mobile and online payment platform established in China in 2004 by the Alibaba Group.

Malaysia is the first country to join the Electronic World Trade Platform (eWTP), a programme initiated by Alibaba Group Executive Chairman and Founder Jack Ma, to help small to medium-sized enterprises (SME) expand their trading capabilities worldwide more easily, directly demonstrating the nation’s enthusiasm in embracing technological innovation.

Currently, millions of users across Malaysia use TNG cards daily for making electronic payments at toll plazas, public transportation systems, parking lots and retail outlets.

The new e-wallet gives current and new TNG users access to more services conveniently via the e-commerce system, from their mobile phones.

CIMB Group Chief Executive Tengku Datuk Seri Zafrul Aziz, said the JV is a landmark deal, based on a synergistic partnership.

“TNG’s leading position, combined with Ant Financial’s Alipay capabilities, will allow Malaysians to participate and access secure payments, digital financial services for the long term.

“This fits nicely with CIMB’s digital aspirations and our FinTech agenda, as we move towards a more inclusive and digitised Malaysia,” he added.

Ant Financial Chief Executive Officer, Eric Jing said along with the launch of the JV, individuals and SMEs would benefit from the development of technology.

“They can make purchases or do business in a more convenient and efficient way in both domestic and international markets, while enjoying a broader range of services,”  he added.

TNG CEO, Syahrunizam Samsudin said the company looked forward to collaborating closely with Ant Financial, in rolling out a set of leading edge payment services to consumers and businesses across the country. — Bernama