Russia’s largest mPOS (mobile points of sale) service, LifePay, has entered the Southeast Asian market with its acquisition of iboxPro, which operates in Vietnam, Indonesia and Thailand. This acquisition serves as a base for further expansion into other ASEAN markets.
ibox was a brand created by international group of companies, with head office in Hong Kong.
Merging to create a new company, LifePay Global will now be Singapore-based, with its services available in Vietnam, Indonesia, Thailand and Russia. The company will have its official launch in London on 10 February, at Finovate Europe 2015.
With more than 20,000 customers and 50,000 active mPOS readers in use, LifePay Global is positioned to process $4 million of transactions monthly. This acquisitions partner it with TechComBank and BankNet in Vietnam, Mayapada in Indonesia and it collaborates with Probiznesbank, Binbank and VTB24 in Russia.
LifePay Global plans to increase the amount of processed transactions to $40 million per month and enter the Chinese and Philippine markets in Q4 2015, with projected growth making it the strongest player in the Southeast Asian mPOS market by 2017.
With an absence of major network mPOS players and few mPOS projects in ASEAN, LifePay’s expansion into Southeast Asia and China is logical, given the overall lack of competition.
With a large number of small and medium businesses (SMEs), their target customers and a large number of issued credit cards with relatively weak card-acquiring infrastructure, LifePay has a strong competitive advantage in the market and is seemingly adopting a blue ocean strategy.
LifePay Global’s product and technology lines include Chip&PIN and Chip&Sign readers, along with an ecosystem of software and hardware business solutions and services. Among these are CRM and business analytics, mPOS installation equipment for points of sale and mobile cash registers with built-in MDM system.
The principal shareholder of LifePay is international venture capital firm Life.SREDA, which focuses on Fintech mobile and Internet projects.
According to Vladislav Solodkiy, board chairman of LifePay Global, he commented on mPOS that “No other financial technology demonstrates such growth speed, low customer acquisition cost and upsell capabilities.”
He added “Our choice of partners for entering Southeastern Asia market was dictated not only by their area of operation, growth rate, quality of customer base and product development but also by the experience of people working in that company. iboxPro has a strong multinational and international team, with team members living and working for a long time in the region’s various countries.”
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