LinQpay, a US-headquartered electronic payments technology
developer, and Internet Payment Solutions, a Chinese online
payments service provider, are to establish a joint venture (JV)
that will provide mobile phone based payment services in China.
The JV will combine LinQpay’s mobile phone-based payment
services with IPS’s payment platform which supports bank card
transactions of 22 Chinese banks. IPS, a unit of Hong Kong-based
conglomerate Universal Technologies Holdings, lays claim to be
China’s leading online payment platform in terms of debit card
transaction volumes processed.
The JV will be targeting the development of mobile commerce
applications and will extend IPS’s existing electronic wallet
service which is currently limited to customers of mobile service
provider China Mobile to customers of all Chinese mobile service
providers. The service will be branded as IPS LinQpay and is
expected to be available to Chinese mobile users in the second
quarter of this year.
“We believe IPS’s e-wallet being accessed by mobile phones will
open up a huge potential market in Chinese m-commerce,” said IPS’s
vice president Sunny Cheung. “This drastically extends our payment
gateway business from the internet users to the mobile phone users
in China, especially those in the rural areas,” he added.
LinQpay is also eyeing significant potential for growth in
China. “With the rapid growth of the Chinese mobile phone and
payment processsing spaces, we see all indicators pointing toward
explosive growth in Chinese m-commerce,” said LinQpay’s CEO James
LinQpay was established in South Africa in 2005 as vWire, and
adopted its current name in May 2007 to coincide with its change of
domicile to the US. LinQpay research and development units are
located in South Africa and India.