Fintech company iSentric (ASX:ICU) has entered a collaboration agreement with Public Bank Berhad (PBB) to jointly develop and introduce a mobile payment solution for the Malaysian market.
iSentric’s shares were last trading 31% higher intra-day, at $0.08.
PBB is the largest bank by market capitalisation in Malaysia since March 2016 and the second largest bank by assets with about RM380 billion as of 31 December 2016.
iSentric’s mobile payment solution will adopt a similar mobile technology as other mobile payment service providers such as Apple Pay, Samsung Pay, Alipay and Tenpay.
The mobile application will be made available on Android and iOS platform and will contribute towards the progress of the mobile payment ecosystem in Malaysia.
Importantly, iSentric will be the sole solution provider to PBB for processing payments from merchants.
The new fintech driven mobile application for customers and merchants is scheduled to be released to the Malaysian market in Q3 2017.
iSentric intends to leverage on PBB’s current strong user and merchant base to penetrate the Malaysian mobile payment industry which currently only consists of Touch N Go and Samsung Pay.
Based on current market trends, mobile payment solutions are changing the landscape of the global payment industry.
The mobile payment market hit US$450 billion in 2015 and is expected to soar to US$1.8 trillion by 2019.