TNG Digital Sdn Berhad a new entity jointly formed by CIMB Bank’s subsidiarity, Touch ‘n Go and Alipay has received green light from Bank Negara Malaysia. The new entity will consist of Touch ‘n Go’ as the majority shareholder and Alipay will participate as the minority shareholder. The capital injected by both parties will go towards the creation of an online and offline payments provider
This news follows their earlier announcement to jointly roll out mobile payments by June 2018, further cementing the group’s cashless ambition. The combination of Touch ‘n Go’s userbase as the national public transport payments card, CIMB’s leverage as the second largest bank in Malaysia and Alipay’s success in rolling out cashless payments in China makes for a force to be reckoned with.
While AliPay’s play still is largely catered to Chinese tourist at this juncture, it is likely that once TNG Digital rolls out its mobile payments system, it will be made available to the general public.
This article was first published on fintechnews.sg
