Beyond the health crisis, COVID-19 will very likely change the way we work, live, play forever. One of the major changes is digital adoption – which means that we are going to do more and more things online.
What this also means is that more transactions are going to be completed digitally, whether we buy more through e-commerce and live stream selling, or pay for transactions online through mobile wallets, credit cards, debit cards and bank transfers.
With operations in Singapore Malaysia, Indonesia and Thailand, MC Payment believes that COVID-19 has only accelerated the pace of e-commerce adoption and “believe that this has benefitted the group”. Even before COVID-19 though, MC Payments has sought to directly acquire merchants into its payments ecosystem, increasing revenue nearly three-folds.
In recent months, MC Payment has already released a slew of interesting announcements, including partnering a QR Payment services provider in Thailand, rolling out its own Buy Now Pay Later (BNPL) solution for its merchants, launching a Facebook Live Selling platform, and more.
Investors here can also look more closely into MC Payment, which was recently listed on the Singapore Exchange (SGX) via a Reverse Takeover (RTO) in February 2021. In this article, we take a closer look at MC Payment’s business.
#1 Could you elaborate on MC Payment’s business segments and its focus.
MC Payment is a one-stop solutions provider to help enterprises digitally transform their businesses, through its unified digital payments platform and other merchant value added services such as digital marketing and Buy- Now-Pay-Later. The Group has 2 main business segments:
Merchant Payment Services (MPS) – Single point O2O solution for merchants via its unified payment platform. Its online payment processing services allows merchants to integrate their websites and mobile applications securely for customers to make payment via credit or debit cards, e-wallets or bank transfers. For in-store payment, merchants can install a smart software application (Smart App) onto smart devices to accept multiple payment methods. The cloud based Smart App also allows for management of multiple point-of-sale (POS) terminals, products, customers, marketing (loyalty and reward schemes, coupons) and access real time sales data.
Digital Commerce Enabling Solutions (DCES) – Provision of ancillary services, such as the sale and lease of Smart POS terminals as well as both proprietary and licensed software-as-a-service (SaaS) which can be white-labelled. White-labelled offerings can be customised to suit various customers’ needs.
#2 What is one lesser-known business area of MC Payment that you wish more people/investors know about?
MC Payment is a one-stop business solution provider helping enterprises digitally transform their businesses, from the enablement of digital payments and other merchant value added services such as digital marketing and Buy-Now-Pay-Later.
In addition to its payments processing business (MPS), MC Payment also provides SAAS business software that leverages on its in-house developed unified platform and Smart App to offer bespoke SaaS services, building relevant solutions customised to merchant needs.
Business ancillary services include Inventory Management, Data Analytics, Digital Marketing and CRM, Cybersecurity services, as well as other F&B and retail solutions and web hosting. Further value-added services such as a comprehensive management system for merchants’ entire operations and AI-driven automation capabilities, among others, are in the works.
#3 What is MC Payment’s business model like, how does the Group generate revenue?
For our MPS segment, charges are on a transactional basis for our online payment processing services. Transaction processing fees are deducted from the monies collected from end retail customers before disbursement to merchants. Other revenue from this segment also comprises of revenue earned for authorisation, clearing, settlement, network access and other support services, which include setup fees, subscription fees and referral fees.
For our DCES segment, revenue is generated from the sale or rental of our POS terminals and monthly subscriptions from the SaaS developed for customers.
#4 Who are some of MC Payment’s customers?
We have over 2,000 merchants using our merchant payment services today and are in the process of onboarding more merchant aggregators, as well as acquiring more merchants. Some of our customers include retail stores (brands include but not limited to: Zara, Watsons), food and beverages stores, and charities such as Make-A-Wish.
We have also made recent announcements to launch payment platform services for the Islamic Religious Council of Singapore Majlis Ugama Islam Singapura (MUIS), Mosque-Madrasah-Wakaf (MMW) Shared Services, as well as Malaysia’s Educational Services Industry.
#5 What are the key focus areas for MC Payment in the next 2-3 years?
Our key focus areas include:
Expansion of customer base – to retain existing customer base via overseas expansion and implementation of online to offline strategies. The Group also intends to attract new merchants by leveraging on our technological know-how, and proven track record to further enhance our unified payment processing platform and the range of value-added services.
Develop value-added services and capabilities – launch new valued-added services to add to our current portfolio of core payment processing services. For example, our O2O payment platform, which started processing Buy-Now-Pay-Later transactions for retail merchants since 1 Dec 2020, has seen a steady pick-up in transaction volumes, crossing the S$500,000 mark in Feb 2021. The Group also introduced integrated payment solution for live streaming sellers on Facebook in Apr 2021.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 18 April 2021 and have been republished with permission. You can read more about MC Payment on the SGX website.
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