MPay forms tie-up to operate digital banking

In a filing with Bursa Malaysia, MPay said its subsidiary ManagePay Services Sdn Bhd has entered into a joint venture with PVC to set up a company that would be applying for the digital bank from Bank Negara.

PETALING JAYA: Managepay Systems Bhd (MPay) is teaming up with Singapore-based Passion Venture Capital Pte Ltd (PVC) to apply for licence and operate digital banking in Malaysia.

In a filing with Bursa Malaysia, MPay said its subsidiary ManagePay Services Sdn Bhd has entered into a joint venture with PVC to set up a company that would be applying for the digital bank from Bank Negara.

Under the joint-venture company, MPay will own 51% stake while the remaining 49% will be held by PVC.

Under the agreement, MPay said it would include PVC to deposit or raise funds of close to RM100mil for the JV company within three months from the date of agreement.

“In the event one month before the expiry of the conditional period, the total funds raised by PVC does not reach RM75mil or more, the parties agree that MPay may invite other investors or shareholders to deposit monies into the capital funds to attain the initial investment sum necessary for the application of a digital bank licence to Bank Negara, ” it said.