Maybank to tap China’s card payments collection market

Maybank has four branches in Greater China, in Shanghai, Beijing, Hong Kong and Kunming.

KUALA LUMPUR: Malayan Banking Bhd (Maybank) is set to tap the growing card payments market in China through a memorandum of understanding (MoU) with China UnionPay Merchant Services (China UMS).

The financial services provider said in a statement that it was the first Malaysian bank to sign such an agreement with China UMS, which would also see it boosting its cash management business in China.

China UMS is the leading issuer of point-of-sale (POS) terminals in China currently with a market share at about 40%.

Maybank said China’s card payments market was estimated to be worth at least 14 trillion yuan (RM9.3 trillion) per year and was growing at some 26% annually.

Under the MoU, Maybank will be able to offer its clients comprehensive collection and payment solutions including POS machines, online payment solutions, ATM solutions and other professional services from its tie-up with China UMS.

At the same time, Maybank customers will enjoy preferential rates by China UMS when they sign up for its POS terminals or online payment gateway to enable card payments by purchasers of their products.

These Maybank customers can also enjoy faster collection of card payment proceeds that will be directly credited into their Maybank accounts after clearing by China UMS.

Maybank said the tie-up was expected to benefit its existing corporate customers involved in retail business in China such as automotive distributors, food & beverage outlets, departmental stores and hotels.

The signing of the MoU was held at the Maybank Shanghai Branch between Maybank and China UMS. Representing Maybank were CEO (Greater China) Datuk Cheong Kwee Heng and group head (transaction banking) John Wong, while China UMS was represented by its vice-president Zhang Yong Tao and marketing general manager Liu De Wei.

Cheong said that aApart from deepening Maybank’s POS business, this strategic partnership was also beneficial for both parties to jointly explore new markets and enhance their service and product offerings by leveraging on each other’s strengths and resources.

“For Maybank, this is a significant and strategic step in reaching out to the promising China market,” said Datuk Cheong Kwee Heng.

Maybank has four branches in Greater China - namely Shanghai, Beijing, Hong Kong and Kunming - where it has been actively involved in the wholesale banking segment.

Cash management has been a growing business within this segment as corporate customers leverage Maybank’s Regional Cash Management System to actively manage their liquidity positions as well as monitor and manage payments to and from their accounts in real time.