GHL Systems to start money-lending services in 4Q19


GHL Systems Bhd expects to roll-out its money-lending services in Malaysia and Thailand in the fourth quarter (4Q) of this year.

This comes after the group’s announcement last month that it has obtained licence to operate in both countries.

“GHL is planning to launch a pilot programme initially in 4Q19 with a few selected merchants to fine tune the process. Once this is finalised, we will eventually roll out and offer the services to our other existing merchants first before expanding it to the market,” the company told The Malaysian Reserve recently.

It has plans to roll out a similar service in the Philippines.

“GHL is currently awaiting the regulatory approvals before embarking on a similar pilot programme with our selected merchants (and to) offer it on a wider scale to our merchant network initially, before moving to the wider market,” a company stated.

The money-lending licences were issued by the Ministry of Housing and Local Government (Money Lending Licence under the Moneylenders Act 1951) and Bank of Thailand (Nano Finance Licence) for GHL’s operating units in Malaysia and Thailand respectively.

“GHL’s unique advantage and position in having visibility to their merchant’s payment patterns will enable GHL to formulate an optimum and equitable financing plan for its transaction payment acquisition (TPA) merchants, which stands at 87,600 points in Malaysia and Thailand,” it noted in a statement last month.

Its CEO Danny Leong said the expanded service offering will further strengthen the group’s position as the leading e-payment solutions provider in the region and preferred choice by merchants.

“We are hopeful in securing similar licence in the Philippines, which is currently in progress,” Leong stated.

Separately, GHL posted a 36% year-on-year (YoY) rise in net profit to RM7.16 million for the 2Q ended June 30, 2019, supported by higher revenue recorded during the period.

In an exchange filing last week, the group noted its revenue rose 27% YoY to RM86 million in the quarter on higher contributions from its shared services.

On its outlook, GHL stated that the emergence of e-wallet and QR (quick response) code payment have spurned growth as the group increases its competitive edges in offering merchants an integrated omnichannel payment solution.

“In the six-month period to June 30, 2019, the group processed RM6.2 billion (31.5% YoY) of transaction payment value across its TPA merchant touchpoints in Asean, which also grew to 125,229 points (64.8% YoY) as the group remains focused on strengthening its position as the leading payments player in Asean,” it said.

Last year, the group partnered a major Malaysian domestic bank to enable its existing electronic data capture terminal base to capture all 10 e-wallets currently available in the Malaysian market.

This trend will be replicated in the Philippines and Thailand where similar plans to partner with the respective domestic banks will commence in 3Q19.

GHL rose six sen or 4.58% to RM1.37 yesterday for a market capitalisation of RM1.03 billion.

GHL is an Asean’s leading payment service provider with key operations in Malaysia, the Philippines, Thailand, Indonesia, Singapore, Cambodia and Australia.

The group manages more than 368,400 point of sales in Asean that enables credit card, debit card, e-wallets, contactless payment and loyalty prepaid top up, as well as bill payment collection services.