Asia in mint condition for new age of payments

Australian payments solution provider, Mint Payments, has told an investor briefing that the company is in pole position to take advantage of developments in key Asia markets, “fundamentally changing” the payments geography of the Asia-Pacific.

Mint Payments provides multi-channel payment solutions to small business as well as large corporations, gleaming fees from distributions partners across subscription, by average transaction value and also by fixed fee transactions.  

Touting a ‘simple and highly-scalable’ business model at a briefing in Sydney last week, the multi-channel (face-to-face, online, mobile) payment solutions provider to over 12,500 merchants across the Asia-Pacific told investors its agnostic technology was primed to benefit from the Asia traction of two recent contracts.

According to Roger Chen, an analyst with PAC partners, Mint has increased recurring revenues, underpinned by favourable global trends and key distribution partnerships. Mint’s low marginal cost per user provides real opportunities for market expansion.

“Two significant partners were signed up in 1H ’16 (Network of Electronic Transfers (NETS) – equivalent to EFTPOS in Singapore - and Asian Business Software Solutions (ABSS) – equivalent to MYOB Asia) to provide payment solutions to the South East Asian market. We expect user and total transaction volume and value to start ramping up in 2H’17 and beyond,” Chen said.

Oodles of street cred

According to Asia-based payments expert, Michael Walters, a portfolio manager at Vix Investments and Board member of MyClear (the payments subsidiary of Malaysian Central Bank), Mint’s experience providing white label and licensed products to large financial institutions like the Bank of New Zealand (BNZ), will give the company credibility across its target Asian markets.

“It’s really important in Asia that you have credibility with the financial institutions you’re going to,” he said.

“Not that I want to say Australian financial institutions are all that fantastic, but the reality is most of the larger Asian banks look to the Australian banks for their decisions on buying processing platforms as Mint has done with BNZ.

"It goes in there and shows they can provide the platform to an existing player and that legitimizes that model, Mint’s model, going into Asia. This makes it easier for banks up there who are now starting to hit that same wall and have the need to renew their tech.”

Walters and Mint co-founder, CEO Alex Teoh, said the time is ripe to take advantage of Asia’s strong regulatory approach to payments, which is now acting as a sector "catalyst rather than a hindrance".

All part of the plan

Last week, Mint announced its latest tie up into Asia, with payment tech and merchant acquiring servicer Global Payments Asia Pacific Limited, bestowing Mint with the kit to provide its integrated payment tech solutions across Malaysia and Singapore with additional territories to follow.

According to Teoh, the latest deal facilitates Mint’s entry into a “high growth, dynamic and developing" Malaysian market, which is also ABSS largest and fastest growing market.

“Malaysia is a key market for us as we see this as another example where regulatory change can create significant opportunities for proven, established payment companies like Mint,” he said.

“The Reserve Bank in Malaysia has established payment card reforms seeking to promote electronic and card acceptance across the country by targeting to grow its card acceptance base to 800,000 terminals by 2020.

“This latest partnership agreement allows us to take advantage of these new reforms and we are confident that this will help drive our growth in the South East Asian region," Teoh added.

As part of the deal, Global Payments will also refer its merchants to adopt Mint’s range of payment solutions in these two markets. In the region, Global Payments Asia Pacific has presence in 12 countries providing a range of payment solutions to over 110,000 merchants, processing over 25 billion dollars.

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