GHLSYS (0021) - (Second Part) This company is the biggest and baddest beneficiary of Alipay
First Part: https://klse.i3investor.com/blogs/Axelrod/118935.jsp
Now that we know how GHLSYS and Alipay are connected, next we need to know how GHLSYS's relationship with Maybank and CIMB would allow them to benefit from the cashless payment (Alipay) partnership. GHLSYS is a third party (outsource) acquirer of merchants for both CIMB and Maybank.
In addition, GHLSYS provides sales, rental and maintenance of payment devices such as POS and scanners. By acquiring merchants and processing the payments, GHLSYS charges a processing fee on the value of each transaction. The rate that GHLSYS charges is 1.17% of the transaction value in 2016, according to its quarterly report. Last year, total transactions processed amounted to RM2.69b which was a 36% jump over the previous year. With more credit card transactions and e-commerce transactions forecasted to grow rapidly, and now with Alipay, this will only boost GHLSYS even more.
Alipay is set to commence in May 2017 with Parkson, Royal Selangor, Duty Free Zone, Eraman and Genting. Notice something common about these places? They are frequented by Chinese tourists who are likely to have Alipay accounts. Many more merchants will soon join the bandwagon as they would not want to lose out on business provided by Chinese tourists who are the biggest spenders. GHLSYS as a third party merchant acquirer, would likely market the service to existing clients such a Guardian and Watsons, etc to adopt Alipay. Businesses would soon have to adopt e-wallet payment systems such as Alipay in order not to lose business. This is inevitable, change is happening. Forget cash and credit cards, e-wallets will be a thing of the future.
Starting with Parkson, Royal Selangor, Eraman and Genting, soon many more merchants will be acquired by third party acquirers such as GHLSYS who will receive a commission on the transactions.
GHLSYS has the biggest banks as its clients.
The direct merchant acquiring and card payment services business is its growth engine.
36% growth in transaction value processed due to e-commerce and credit card usage. This segment will continue to grow at a high rate, explaining the high PE of the company.
Stay tuned to Part 3, where I will do a calculation to show how much gain in revenue GHLSYS can potentially achieve from Alipay...
GHLSYS (0021) - (Second Part) This company is the biggest and baddest beneficiary of Alipay
http://klse.i3investor.com/blogs/Axelrod/118937.jsp
First Part: https://klse.i3investor.com/blogs/Axelrod/118935.jsp
Now that we know how GHLSYS and Alipay are connected, next we need to know how GHLSYS's relationship with Maybank and CIMB would allow them to benefit from the cashless payment (Alipay) partnership. GHLSYS is a third party (outsource) acquirer of merchants for both CIMB and Maybank.
In addition, GHLSYS provides sales, rental and maintenance of payment devices such as POS and scanners. By acquiring merchants and processing the payments, GHLSYS charges a processing fee on the value of each transaction. The rate that GHLSYS charges is 1.17% of the transaction value in 2016, according to its quarterly report. Last year, total transactions processed amounted to RM2.69b which was a 36% jump over the previous year. With more credit card transactions and e-commerce transactions forecasted to grow rapidly, and now with Alipay, this will only boost GHLSYS even more.
Alipay is set to commence in May 2017 with Parkson, Royal Selangor, Duty Free Zone, Eraman and Genting. Notice something common about these places? They are frequented by Chinese tourists who are likely to have Alipay accounts. Many more merchants will soon join the bandwagon as they would not want to lose out on business provided by Chinese tourists who are the biggest spenders. GHLSYS as a third party merchant acquirer, would likely market the service to existing clients such a Guardian and Watsons, etc to adopt Alipay. Businesses would soon have to adopt e-wallet payment systems such as Alipay in order not to lose business. This is inevitable, change is happening. Forget cash and credit cards, e-wallets will be a thing of the future.
Starting with Parkson, Royal Selangor, Eraman and Genting, soon many more merchants will be acquired by third party acquirers such as GHLSYS who will receive a commission on the transactions.
GHLSYS has the biggest banks as its clients.
The direct merchant acquiring and card payment services business is its growth engine.
36% growth in transaction value processed due to e-commerce and credit card usage. This segment will continue to grow at a high rate, explaining the high PE of the company.
Stay tuned to Part 3, where I will do a calculation to show how much gain in revenue GHLSYS can potentially achieve from Alipay...
GHLSYS (0021) - (Second Part) This company is the biggest and baddest beneficiary of Alipay
http://klse.i3investor.com/blogs/Axelrod/118937.jsp
