Malaysian lender CIMB has formed a joint venture (JV) with Alipay, the payments platform operated by Ant Financial Services Group, to deliver a mobile payments platform.
Touch ‘n Go (TNG), a subsidiary of CIMB, will be the majority stakeholder in the JV, while Ant Financial will own a minority stake.
“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,” the Malaysian bank said in a filing with the stock exchange.
TNG supports electronic payments at toll roads, public transportation systems, and parking and retail outlets. The proposed platform will allow these services to be accessed on mobile phones.
The companies did not disclose details about the amount of capital invested in the JV.
The deal, which is subject to regulatory nod, marks Ant Financial’s first investment in Malaysia.
Ant Financial CEO Eric Jing said: “Along with the launch of the JV, individuals as well as SMEs will be able to benefit from the development of technology. They 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.”