SIGNS AGREEMENT WITH TENCENT PAYMENT COMPANY
First Global Data Ltd.'s (FGD.V) wholly owned U.S. subsidiary, First Global Money Inc., has entered into an agreement with Tenpay Payment Technology Co. Ltd., a subsidiary of Tencent Holdings.
Tenpay is a leading payment platform owned by Tencent. The platform is dedicated to providing efficient and professional cross-border on-line and off-line payment service to global users. Tencent also owns WeChat, a social messaging platform which has close to one billion users registered globally, and WeChat Pay which is the mobile payment service embedded in the WeChat social messaging service which Tenpay operates.
On Nov. 21, 2017, Fortune reported that: "Tencent (TCTZF, +1.21%) has become the first Chinese tech firm valued over $500 billion. Shares of the 19-year-old company, listed on the Hong Kong Stock Exchange, hit record numbers on Tuesday, rallying to close at HK$430 to give it a market capitalization of some $522 billion-about $3 billion above Facebook's closing valuation of $519 billion Monday." The article can be found on-line.
As part of this cross-border payment acquiring service agreement, First Global will work closely with Tencent to expand merchant processing and settlement services in the United States. The service will enable existing WeChat users to make payments from their WeChat mobile wallet at retailers and merchants located in the U.S.
In China, mobile wallets are the predominant method used for payments. WeChat users load local Chinese funds (renminbi) into their WeChat mobile wallets and make payments across China using WeChat Pay. WeChat Pay is one of the leading payment services widely accepted. The service provided under this agreement will enable WeChat users to travel to the U.S. and make purchases at retailers and merchants seamlessly. First Global, working together with Tencent will facilitate the conversion from renminbi to U.S. dollars and the settlement of payments with the retailers and merchants in the U.S. First Global announced on Jan. 16, 2018, that it entered into a definitive agreement with China Smartpay. China Smartpay works closely with Tencent for the processing of WeChat Pay transactions in China. The companies will work together to ensure that all requisite compliance controls are in place and regulatory guidelines are followed in both countries. The companies will also share transactional revenues.
"This is a significant milestone for First Global. We are very pleased to have been chosen as a partner by Tencent. In discussions leading up to this agreement, among other things, First Global's strength and focus on technology and compliance were key determining factors. We believe that this collaboration will bring an incredible opportunity to the U.S. retail sector which is open to embracing new technologies that help to drive incremental business. We are already working closely with our partners toward the deployment of services. It is gratifying to see that the assets and value we have built in First Global over the past few years are now being recognized by large and successful companies such as Tencent," commented Andre Itwaru, chairman and chief executive officer of First Global Data Ltd.
About First Global Data Ltd.
First Global is an international financial services technology company. The company's two main lines of business are mobile payments and cross-border payments. First Global's proprietary leading-edge technology enables the convergence of compliant domestic and cross-border payments, shopping, peer-to-peer (P2P), business-to-consumer (B2C), and business-to-business (B2B) payments.