OxPay Financial TVV and CIMB Bank have entered into a non-binding agreement in an effort to enhance digital payment solutions to lower transaction fees for merchants.
In an announcement on April 20, OxPay says the agreement will “bolster” its presence in Singapore as the exclusive payment gateway collaboration partner of the Malaysian bank, which operates on a full banking license in Singapore.
The agreement will also strengthen CIMB Bank's merchant services for both card transactions and financing products and form the basis for further discussions which may require parties to enter into separate definitive agreements.
OxPay, which is principally engaged in the provision of merchant payment services and digital commerce enabling services, aims to increase its presence in the market of offline vendors and merchants and offer services that were previously unavailable through preferred collaboration such as specific bank programmes.
The company says it expects to benefit from lower processing cost through CIMB Bank’s collaboration with Visa and Mastercard, allowing OxPay to offer payment processing services at a reduced card network cost.
Koh Jin Kit, OxPay’s managing director, says: “The proposed collaboration will allow us to improve our merchant payment services solutions. With CIMB Bank's influential regional presence, we are eager to support their large extensive networks to expand their product and services offerings in CIMB Bank's Merchant Business segment.
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“The proposed collaboration will also enable us to introduce advanced digital payment solutions to CIMB Bank's clients, opening doors for the future of digital payments in the region,” he adds.
According to the agreement, OxPay will offer digital payment solutions services to CIMB Bank's network of clients under the proposed collaboration. This will allow them to expand their range of products and services in CIMB Bank's merchant business section.
“Our proposed collaboration with OxPay reaffirms our commitment to driving innovation and enhancing the digital economy in the region. By leveraging our combined resources, we aim to engineer a secure and convenient payment ecosystem that delivers unparalleled value to our customers,” says CIMB Bank’s head of consumer banking and digital Merlyn Tsai.
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“The proposed collaboration will enable CIMB Bank's clients to benefit from OxPay's innovative digital payment solutions, enhancing our merchant services for card transactions and financing solutions for both consumers and merchants.”
Through the collaboration, OxPay aims to grow its reach in the offline vendor and merchant market and provide services that were previously unavailable through other collaborations.
At 2.02pm, shares in OxPay were trading flat at 8.5 cents.
