TSX Venture Exchange: FGD
Frankfurt Stock Exchange: 1G5
TORONTO, Sept. 26, 2017 /CNW/ - First Global Data ("First
Global" or the "Company") is very pleased to announce that it has
entered into a Binding Memorandum of Understanding ("MOU") with
China Smartpay to deliver cross border payment solutions for
Chinese vacation travelers and students studying overseas.
There are large numbers of students of Chinese origin studying
abroad and then returning to China
after completing their international studies. According to the
State Council The People's Republic of China
(http://english.gov.cn/state_council/ministries/2017/03/01/content_281475581664446.htm),
"In 2016, 544,500 Chinese students studied overseas, 144,900 people
more than 2012; while the number of returnees in 2016 was 432,500,
up 159,600 than 2012," said Xu Tao,
head of the international division of the ministry.
The challenge for these students when they are overseas is
access to funds for payment of tuition and to have access to local
currency they need for other expenses.
The Chinese middle class has grown rapidly over the years. More
and more Chinese are traveling internationally and shopping.
According to Jing Daily
(https://jingdaily.com/report-chinese-shoppers-bought-almost-half-the-worlds-luxury-goods-in-2015/)
in 2015 "Chinese shoppers bought almost half of the world's luxury
goods"…"The outbound Chinese tourist numbers reached 120 million in
2015"…and "Chinese consumers spent 1.2
trillion yuan ($183 billion)".
According to Fung Global Retail and Tech
(https://www.fungglobalretailtech.com/research/global-chinese-shoppers-carry-spending-momentum-2016/).
By 2020, they estimate that "186 million Chinese tourists will
travel overseas"…and that "their total overseas spending will reach
US$349 billion per year."
Even with the significant growth, it is very difficult for these
travelers to make payments overseas in part because of the low
penetration of credit cards in China, limited access to their funds when they
are overseas, conversions into foreign currencies, and regulatory
guidelines both in China and
overseas which must be met.
According to Mr. Xiong, the President of China Smartpay Group
Holding, "Chinese outbound tourism will continue to experience
consistent rapid growth. In 2016 Chinese outbound tourists spent
216 billion US dollars, of which
the United States accounted for
120 billion US dollars. This shows
that the North American market is one of most important
destinations for Chinese tourists. This growth is being aided by
the rapid development of Chinese financial technology along with
overseas partnerships to reach Chinese tourists outside of
China. China Smartpay Group
Holdings Limited is a Hong Kong
listed company which is engaged in smart payment and internet
finance. In China, the company
owns the nationwide prepaid card license an internet payment
license, and the leading smart POS technology systems. It has built
an industry leading team and technology, and has aligned with
strategic partners to become an industry leader. China Smartpay
Group has accumulated rich experience in internet payment and
mobile payment solutions and is partnering with First Global Data
for its leading technology, licenses, and wide payment network and
capabilities in North America to
carry out the North American market mobile payment
business."
"We are very pleased to be partnering with China Smartpay. China
Smartpay is a highly respected organization and we have developed a
strong level of respect and trust for each other. First Global and
China Smartpay will jointly deliver cross border and other payment
services to address these significant needs and growing market
opportunities. We intend to leverage China Smartpay's strength and
licenses in China to originate
transactions from China, couple
that with First Global's overseas licenses and cross border
payments capabilities to ensure compliant cross border
transactions, and First Global will terminate these transactions to
beneficiaries which are individuals and retailers outside of
China. We believe that the
combined strengths of both companies will position us well to
capture market share in this sizeable and expanding market", said
Andre Itwaru, Chairman and CEO of
First Global Data Limited.
About China Smartpay (www.chinasmartpay.com/en)
China Smartpay is China's
leading payment solutions company. The China Smartpay Group
Holdings (8325.HK) is a Hong
Kong-listed company which is engaged in smart payment and
internet finance. The company owns the nationwide prepaid card
license and internet payment license, and possesses leading smart
POS technology and systems. By cooperating with capable and
well-known strategic partners, China Smartpay is able to take a
leading position in the payment industry. China Smartpay's payment
business will be based on prepaid cards, and expand into internet
payment, mobile payment, and O2O, etc. in order to serve customers
of various types, and establish a vast real-name account network.
In the long term, such account network will become the platform for
integrated and personalized financial services.
About First Global Data Ltd.
(www.firstglobaldata.com)
First Global is an international financial services technology
("FINTECH") 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. First Global enables its strategic
partners and clients around the world with our leading edge
financial services technology platform.
Caution:
Neither TSX Venture Exchange Inc.
("TSXV") nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy nor shall there be any
sale of the securities offered in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
Forward Looking Information:
This news release
contains "forward-looking information" within the meaning of
applicable securities laws. Although First Global believes in light
of the experience of its officers and directors, current conditions
and expected future developments and other factors that have been
considered appropriate, that the expectations reflected in this
forward-looking information are reasonable, undue reliance should
not be placed on them because First Global can give no assurance
that they will prove to be correct. Readers are cautioned to not
place undue reliance on forward-looking information. Actual results
and developments may differ materially from those contemplated by
these statements. The statements in this press release are made as
of the date of this release. First Global undertakes no obligation
to comment on analyses, expectations or statements made by
third-parties in respect of First Global, its securities, or
financial or operating results (as applicable). First Global
disclaims any intent or obligation to update publicly any
forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
SOURCE First Global Data Limited