Touch ‘n Go to invest RM60m in new operating system

KUALA LUMPUR: CIMB Group Holdings Bhd’s associated company Touch ‘n Go Sdn Bhd is expanding its current back office clearing house with an investment spending of RM60 million. The move will accommodate for a larger transaction volume from its soon-to-be introduced new mobile payment application as well as its existing prepaid smartcards technology. The investment is self-funded by Touch ‘n Go although CIMB Group chairman Datuk Seri Nazir Razak said that the group remained committed to providing financial support to cater for the former’s rapid growth. CIMB Group is Touch ‘n Go’s largest shareholder with a 52 per cent stake. Touch ‘n Go chief executive officer Syahrunizam Samsudin said the move to introduce mobile app is a better strategy as it is more user-friendly and people tend to have their smartphones close, within arm’s reach, compared with prepaid smartcards. “Our financial platform is accessible to everyone as Touch ‘n Go is available across all toll systems, transits and various other places like retail outlets. “That was the old technology (prepaid smartcard) and we are going to introduce a new digital technology via mobile app for ease of payment as people are with their smartphones all the time. “However, they still have the option to use the Touch ‘n Go smartcards as we are not going to discard the smartcards,” he said at the company’s first partnership with a food and beverage outlet, here, yesterday. “Once we get the approval (from Bank Negara Malaysia), we will introduce the new technology by the beginning of next year. Currently, we are undergoing pilot tests,” he said. Syahrunizam said the new mobile application using quick response code technology will allow users to tap or scan barcodes to pay for goods and services, including utility bills and prepaid reloads. It will also enable balance transfers to a third party. Touch ‘n Go yesterday formed a collaboration with NZ Curry House Sdn Bhd to introduce e-payment and reload facilities at all of the latter’s outlets. Syahrunizam said the collaboration was in line with Touch ‘n Go’s target towards a cashless society and further enhance its role in bringing urban mobility to the Klang Valley. Touch ‘n Go is the leader in micropayments in Malaysia, with more than four million transactions taking place in a day.

[Source:-New Straits Time online]