Mint Payments Ltd (ASX:MNW) has signed an agreement with United Overseas Bank Malaysia (UOBM) to license and distribute Mint’s payment solutions in Malaysia.
The company’s shares are trading about 30% higher intra-day, at $0.048.
UOBM is part of the UOB Group, the third largest bank in South East Asia having a strong presence in Singapore, Malaysia, Indonesia, Thailand and China.
Mint will supply and provide its payment systems, services and hardware to UOBM, delivering an all-in-one multi-channel payment solution.
Monthly recurring revenue stream
UOBM has agreed to a minimum monthly order commitment upon commencement of the payments service by Mint.
Moreover, UOBM will pay Mint monthly software and terminal activation fees, hardware and transaction fees over an initial three-year term, with an option to renew on an annual basis thereafter.
Regulatory change in Malaysia to be a catalyst
Mint’s payment solution is a strategic initiative for UOBM as it shall assist the bank to meet its obligations to the Reserve Bank of Malaysia’s payment card reforms.
As part of these reforms, the Reserve Bank is seeking to grow Malaysia’s card payment acceptance base from its estimated current base of 350,000 to 800,000 terminals by 2020.
Importantly, the regulatory change is a significant opportunity for Mint’s range of mPOS (mobile point of sale) and online payment solutions.