MC Payment, a Singapore-based fintech and business solutions provider, has closed an S$6 million ($4.5 million) in a Series B round led by ESW Manage, an Asia-focused private equity (PE) firm, along with private investment firm, DZW Capital. Other investors include Golden Equator Capital, a multi-family office, PE and venture capital (VC) firm based in Singapore.
MC Payment currently operates in Singapore, Malaysia, Hong Kong and Indonesia and works on simplifying complex digital payment issues.
This latest investment will fund its market expansion into Australia and Southeast Asia as well as enhance its key product offerings, including ‘Xaavan’, its B2B supply chain and e-invoicing platform for merchants and suppliers.
Currently, it offers a number of payment solutions such as mobile point of sale (mPOS) solution (ffastpay), Xaavan and its flagship MC Payment product. In addition, it provides a payment solution for taxi transport providers, ‘MatchCab’, which integrates into existing booking systems.
Founder and Group CEO of MC Payment, Anthony Koh, said, “Businesses today are operating across countries, with consumers using a variety of non-cash payment options. We see an urgent need for platforms that can process a multitude of payment methods; something we have deep experience in.”
“This funding will help us to address that demand by accelerating development of end-to-end payments solutions across industries in the region,” Koh added.
According to the company, a key investment priority is ‘Xaavan’, MC Payment’s web-enabled B2B supply chain payment and e-invoicing platform. It is claimed to be the first MasterCard-certified Level 3 enhanced data processing solution in Asia.
MC Payment also offers payment technology and transaction processing solutions under the product name of ‘MC Payment’ and is currently deployed as a payment solution by a number of charities to process online donations. Currently, it is being rolled out by e-commerce giant Qoo10. In addition, MC Payment is developing a non-cash payment solution for Singapore’s first vending machine café, Chef in Box VendCafé.
The company states that ffastpay is currently deployed by retailers and merchants, including insurers and telecommunication firms in Hong Kong and Malaysia, to support consumer payments on-the-go. Besides these markets, MC Payment is looking to capitalise on the strong e-commerce growth in Southeast Asia by expanding into Thailand and Vietnam,
Wong Yat Foo, Founder and Chairman at ESW manage, said, “With the endorsement and approval of their technology by big players like Visa, MasterCard and many more, the company has huge potential to serve many more merchants and banks and grow their transaction business.”
When asked about an exit event, Koh told DEALSTREETASIA: “We’re currently focused on growth and are not sure about what’s in the future. We’re currently focused on business growth across Southeast Asia and Oceania.”
The payments industry is a growing sector, with consumers now having access to a rising number of options from mobile wallets to credit cards and domestic payment methods.
According to IDC Financial Insights, Asian consumers are quick to adopt multiple payment choices for both offline and online transactions, seen in the increasing use of digital wallets, which rose from 9.7 per cent in 2013 to 19.5 per cent in 2015.
Complementing this growth is a simultaneous increase in cross-border e-commerce transactions in the region, with online sales in Singapore, Malaysia, Indonesia, Thailand and Vietnam estimated to grow by up to 25 per cent annually from 2013.
About the development potential of cryptocurrencies, Koh told DEALSTREETASIA: “We have the infrastructure to support Bitcoin transactions and are currently working with a bitcoin exchange that’s a regional player.”
“Internet penetration, global consumer activities and adoption of electronic payment methods has increased by leaps and bounds; Southeast Asia presents a great opportunity in the payments space. This is where we come in – to provide specialised financial technology services that support the complex and growing payment needs within the region,” added Koh.