User used QR code to scan for cashless payment. Heng Chivoan
Revenue Group Bhd, a Malaysia-based cashless payment solutions provider, has unveiled plans to expand its business in Cambodia and Myanmar, saying it will use some part of the capital it raises from an initial public offering (IPO).
Malaysian daily The Star said that Revenue Group Bhd expects to raise 20.61 million ringgit ($5.17 million) from its IPO at Bursa Malaysia Berhad, the Malaysian stock exchange, and will utilise the proceeds on several different fronts.
Group CEO Eddie Ng Chee Siong said the company has been looking for a strategic partnership with local companies in Cambodia and Myanmar and plans to use 1.5 million ringgit ($376,132) for business expansions in the two countries.
“We believe there is potential for growth in electronic payment solutions in these countries [Cambodian and Myanmar] as their electronic payments systems are still in a growth stage,” Chee Siong said.
He continued that the company planned to use IPO funds for capital expenditures, upgrading and enhancing its revPAY platform, to recruit more information technology staff and to repay bank loans.
Under its proposed listing on the ACE Market of Bursa Securities Bhd, Revenue Group is scheduled to list on July 18.
Plenty of competitors
Mobile payment platforms are quickly gaining traction and providing a new channel to promote financial inclusion in Cambodia. Local firm Pi Pay has taken a lead among mobile payment services as the app has been downloaded over 210,000 times since its launch in July last year.
Other local apps are competing for a share of the growing mobile payment market, including DaraPay, Bongluy, GrabPay and Smartluy.
In addition, several banks have rolled out their own payment platforms, either as standalone apps or as part of their online banking platforms. Acleda Bank last April launched its new cashless e-wallet product, called Acleda Unity ToanChet.
In Channy, president and group managing director of Acleda Bank, said on Monday that mobile phones have transformed the lives of many Cambodians and mobile financial services are providing more convenience in everyday life.
“It is good to have more operators in the market as they will help consumers realise the benefit of new technologies,” he said, adding any player that enters the market and complies with requirements from Cambodian financial regulators will benefit consumers.
