November 3, 2014
Soft Space, an Asian white-label mobile point-of-sale (POS) platform maker, recently announced that it has acquired Fasspay. Fasspay is a payment service provider based in Malaysia. Soft Space has partnership with 14 banks in the Southeast Asian region, where its POS systems are used. Soft Space has shipped more than 35,000 readers in less than 2 years. It is projected that the company will process up to $1 billion in credit card
The recent acquisition will allow Soft Space to add companies in the retail, aviation, and automobile industries. The company will get the opportunity to add companies like Air Asia and Toyota to its list of customers. Soft Space will also be able to access SMEs via the SME Corp initiative in Malaysia. Fasspay, being a merchant acquirer, will help Soft Space in this regard.
Chang Chew Soon, founder and CEO of Soft Space, said in an official statement: Our philosophy is to empower banks with our mobile card acceptance technology to support all types of merchants. Traditionally, the banks’ focus has been on provision of card processing services to merchants only. Payment service providers allow banks to grow their respective market share quicker, as well provide managed services and support. Through Fasspay, Soft Space can now cater directly to merchants’ demands for a slew of value added services to mobile payments.
As per a research conducted by Nielsen, smartphone penetration in Southeast Asia is expected to surpass that of U.S. and many European markets within next few years. This rise in smartphones is facilitating the growth of m-commerce, but retailers still have some barriers to overcome. One of them is building a logistics network that will allow shipments of physical goods to pass easily through different countries. Another is making online payments easy and accessible even in markets with low credit card penetration in comparison. While most transactions are being conducted in cash, Soft Space will benefit in the near future as more consumers will eventually move from cash to online payments. Fasspay will try to position itself as a value-added service in countries where Soft Space already has made a presence.
Joel Tay, CEO of Fasspay, said: We have signed a partnership with a financial institution in Indonesia, to provide mPOS services coupled with other financial products. Our focus in the next two years will be on building our base of operations there, as mPOS penetration in Indonesia stands at only 25 percent while an estimated $328.8 billion in card transactions have been projected by 2017, making it a very promising market.