i) iPay88 and NTT Data M&A sees leverage of Malaysian technology for Japanese IT giant into fast-growing online payment solutions market.
ii) NTT Data Group targets to be world’s Top 5 payment gateway solutions provider.
iii) Online Payment Gateway market expected to grow exponentially in tandem with region’s eCommerce and ‘cashless’ society trends
Kuala Lumpur, 17 October 2016 – iPay88 Sdn Bhd (‘iPay88’) – the leading online payment gateway provider in South East Asia, announces today that NTT Data Corporation (‘NTT Da-ta’) will be adopting iPay88’s solution as its flagship payment gateway technology to fast-track to leadership position in the vast Asia-Pacific (APAC) market.
Mr KH Lim, Executive Director of iPay88 made the announcement today at the 28th MSC Malaysia Implementation Council Meeting (ICM), presented to Prime Minister Datuk Seri Najib Tun Razak recently.
This strategic business move by NTT Data is facilitated by part, due to its acquisition of a majority equity stake in iPay88, via its subsidiary NTT Data Asia Pte Ltd in September 2015.
According to Tohru Yoshioka, Japanese Director representing NTT Data in iPay88, Thailand, Indonesia, Vietnam and the Philippines are the initial target markets that NTT Data will drive its online payment solution business and presence.
“iPay88’s proprietary payment gateway is already a dominant brand that facilitates eCommerce in the region. Hence it is a strategic move for the NTT Group that already has leader-ship position as the No. 1 online payment solution provider in Japan, to aim to extend its leadership throughout the APAC region.
In order to achieve this plan quickly, the most logical manner is to adopt the Malaysian-based iPay88 technology that is already widely trusted and used for many years in many ASEAN markets for eCommerce.
NTT Data plans to be in the forefront in this fast-growing online payment market by providing security-rich credit and finance technology system using iPay88’s proven eCommerce and mobile commerce solutions,” explains Tohru.
NTT Data is part of NTT Group, which # 65 in Fortune Global 500 (in 2015) and is the 3rd largest telecommunications company in the world in terms of revenue.
NTT Data dominates over 70 percent of local online payment market in Japan via using CAFIS®, the largest payment card network in Japan that serves over 200 banks in Japan with 600,000 credit authorization terminals and records 60 million transactions per month.
Tohru says, “In the area of online payment solutions, NTT Data aims to be amongst the world’s Top 5 brands. To achieve this, the group needs to double its total online payment transactions over its networks, to a value of USD1 Billion annually.”
Adopting iPay88 for the ASEAN market immediately enable NTT Data to drive up its business coming from outside of Japan, as iPay88 is already connected with several major online payment platform giants such as Alipay Wallet and WeChat Payment.
Big Potential in ASEAN
The 2014 Nielsen Global Survey of eCommerce highlighted that The Philippines (62%), Indonesia (61%), Vietnam (58%) and Thailand (58%) rank in the top 10 markets globally. Meanwhile a report by AT Kearney reveals that Malaysia is now at an ‘eCommerce inflection point’ behind Korea, US, China, India, Taiwan, and Singapore.
KH Lim says, “The key to connecting with online shoppers is understanding what local shoppers want and then evaluating the local eMerchants who can provide the services needed in each market.
We are familiar with the local ASEAN eCommerce landscape and the dynamic nature of each specific market’s economy and the culture. iPay88 has been succeeding by localizing our payment technology and solutions to suit the intricacy of each unique market.”
Dato’ Ng Wan Peng, MDEC COO says, “We are extremely proud that a Malaysian technology is selected by NTT Data to be such an important part of its group’s strategy to front its entire global online payment business outside of Japan.”
Dato’ Ng adds that iPay88 is part of The Global Acceleration and Innovation Network (GAIN) that aims to catalyze local tech companies to be global technology icons.
“This selection by NTT Data is testament that GAIN is on the right path with iPay88 as it be-comes yet another quality export of Malaysia’s tech solutions and services.”