OxPay on the Verge of Adding Potentially Lucrative Business: Issuing Credit Cards
- OxPay to expand its services by issuing credit cards, enhancing its position in the competitive fintech market.
- New CEO Yick Li Hsin leads the charge in exploring new markets and business opportunities.
SINGAPORE - Media OutReach Newswire - 19 July 2024 - OxPay Financial Limited (SGX: TVV) ("OxPay" or the "Company", and together with its subsidiaries, the "Group") is on the verge of adding a potentially lucrative business to its portfolio: issuing credit cards. As the only payment solutions provider listed on the Singapore Exchange, OxPay currently serves around 4,000 merchants, primarily in Singapore, with a growing presence in Malaysia and Thailand.
The payment sector is highly regulated, with licenses such as those from the Monetary Authority of Singapore acting as high barriers to entry. This regulation ensures a secure and reliable service for OxPay’s clients, which include well-known brands like Watson's, Old Chang Kee, and Q&M Dental, as well as numerous small businesses.
Market Dynamics and Financial Performance
In FY2023, OxPay reported a revenue of S$8.3 million, a 16% year-over-year decrease, with a net loss of S$1.9 million. This reflects the competitive and mature nature of the Singapore market, where 83% of OxPay's revenue was generated. However, under the leadership of new CEO Yick Li Hsin, appointed in January 2024, OxPay is poised to expand into new markets and business lines.
Expansion into New Markets and Services
From 2024, OxPay plans to target smaller merchants in Indonesia, Malaysia, and Thailand. This will be achieved through strategic partnerships and acquisitions, focusing on underbanked and unbanked populations. "Singapore has about 200,000-300,000 merchants while Indonesia has about 20-plus million. A huge number are the mom-and-pop shops," says Mr. Yick in an interview with NextInsight. "We have the potential to work with them. As a fintech company, we try not to directly compete with traditional banks but to reach out to this underbanked and unbanked population."
Strategic Partnerships and Collaborations
- Agreement with DCS Card Centre: In March 2024, OxPay entered into an agreement with DCS Card Centre (formerly Diners Club Singapore) to become their payment facilitator. This allows OxPay to process transactions on credit cards and charge cards, as well as international transactions through Visa, Mastercard, Diners Club International, and China UnionPay.
- Collaboration with Green Link Digital Bank: In December 2023, OxPay SG collaborated with Green Link Digital Bank, a licensed wholesale digital bank in Singapore. This partnership aims to provide banking, supply chain financing, and working capital financing services to business enterprises in Singapore. Through this collaboration, OxPay hopes to acquire more merchants and provide them with credit facilities, thereby increasing merchant loyalty and standing out in the competitive market.
OxPay’s venture into credit card issuance and strategic partnerships aligns with its broader goal to increase its market presence in the Asia-Pacific region. These initiatives are expected to enhance customer loyalty and drive growth by tapping into new and existing markets.
With an established digital infrastructure and a growing geographical presence, OxPay is well-positioned to capitalize on significant market opportunities and reinforce its standing as a leading fintech player in the region.
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The issuer is solely responsible for the content of this announcement.
About OxPay Financial
OxPay is principally engaged in the provision of merchant payment services and digital commerce enabling services, offering online-to-offline (O2O) solutions through a fully integrated platform with a focus on servicing merchants in the retail, transportation and food and beverage industries. Its end-to-end payment platform offers comprehensive solutions for merchants, ranging from hardware and software to data analytics and other technology-driven value-added services tailored to specific industries. Its solutions cater to merchants with both on-line and off-line presences, provided through a unified platform for digitalising engagement across all channels. OxPay currently has a presence in four geographical markets - Singapore, Malaysia, Indonesia and Thailand - with ambitions to become a regional player in the global payment space.
This press release has been prepared by NextInsight. For more information, please visit us at http://oxpayfinancial.com/
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