The CIMB unit and Touch n Go Sdn Bhd will be majority shareholder and Ant Financial a minority shareholder, the bank said in a statement filed at the Kuala Lumpur stock exchange.
The capital introduced by both parties will go towards the creation of an online and offline payments provider, delivering mobile wallet solutions and other related financial services, according to CIMB.
Millions of Malaysians use Touch n Go cards daily to pay for road tolls, bus fares, parking and shopping. The envisaged mobile wallet will allow these users access more services on mobile phones. Alipay users currently use e-wallet services on mobile phones to hail taxis, book hotels, buy movie tickets, pay utility bills, make doctors appointments and manage their finances.
After growing into multi-billion dollar companies, Chinese financial technology (fintech) and internet companies including Ant Financial, Lufax and Tencent Holdings Ltd are moving into Southeast Asia and beyond in search of more customers.
Digital payments companies are looking to tap the more than 370 million people without bank accounts that use cash on a day-to-day basis in Southeast Asia to offer lending and other financial services.
Tencent has applied for a license in Malaysia to offer local payment services via its popular WeChat Pay, while Lufax announced plans to launch its wealth management platform in Singapore, reports Reuters.
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