Offering multi-channel payment solutions

Our Group has participated in the local electronic payments industry since 2003. We have since evolved from an EDC terminal vendor into a multi-channel payment solutions provider. We offer a single platform which facilitates payment acceptance over multiple channels, thereby providing cost effective solutions to our customers. Our revPAY platform is able to process payment transactions whether from physical EDC terminals, e-commerce transactions over Internet, mobile commerce transactions through mobile devices or QR Payment.

In order to facilitate the electronic transactions regardless of channels, revPAY acts as the focal point linking financial institutions, Card Schemes and Merchants together. revPAY is the core of our multi-channel system that provides front-end to back-end functions. revPAY platform is self-developed and maintained in-house, which gives us the ability to modify, improve and customise it to meet each of our customers' requirement.

We partner an extensive range of local and international branded Card Schemes and an e-money payment scheme

We act as Acquirer for an extensive range of Card Schemes and an e-money payment scheme. They include MyDebit, UnionPay, Diners Club, NETS, JCB and Company A. This gives us a competitive advantage over our competitors who are not Acquirer of the above payment schemes as our extensive range of payment schemes will enable Merchants to tap into a wider pool of tourists to Malaysia, which can lead to potentially higher transactions for the Merchants.

As Acquirer for the above payment schemes, we can partner with banks and non-bank institutions who are not member of those payment schemes, by offering and enabling their Physical Store Merchants to accept diversified payment cards.

We also benefit from the network of the respective Card Schemes, some of which are servicing a larger economy (such as Unionpay in PRC and Discover Global Network which has a global alliance with amongst others, Korea’s BC Card and India’s RuPay Card). This could potentially translate to higher transactions for our Merchants as the Cardholders travel as tourists to Malaysia.

According to the IMR Report, the total number of payment cards in circulation was approximately 13.6 billion in 2016. UnionPay, Visa and MasterCard collectively accounted for 80.0% of the cards in circulation globally. The number of payment cards in circulation by various Card Schemes for 2016 are depicted below:

Payment cards in Circulation, 2016

* American Express, Diners Club, JCB, Discover, domestic and private label cards are grouped under others.

In addition, our revPAY platform has also obtained back-end system certification from various worldwide payment schemes (MyDebit, UnionPay, Diners Club, NETS, JCB and Company A).

We are the only partner in Malaysia to Company A since 2013, to process outbound payments via internet banking for purchases made by Malaysian consumers on their affiliate's PRC online marketplace

Since 2013, we are the only partner in Malaysia to Company A, to process outbound payments via internet banking for purchases made by Malaysian consumers on their affiliate's PRC online marketplace. As at the LPD, we process the payment transactions for 9 local banks (AmBank, Bank Muamalat, Bank Rakyat, Bank Simpanan Nasional, CIMB Bank, Hong Leong Bank, Maybank, Public Bank and RHB Bank) through our revPAY platform.

Our total transactional value for the PRC online marketplace for FYE 2015 to 2017 and FPE 2017 were recorded at approximately RM68.2 million, RM128.0 million, RM298.1 million and RM230.4 million, respectively. As our fees are calculated based on a pre-determined commission which is charged on the transactional value that we processed, the increase in transactional value had contributed positively to our revenue over FYE 2015 to 2017 and FPE 2017.

Technology know-how and sustained R&D efforts

Our strategy is to focus on the development of proprietary software applications, technology and business processes. We believe that such proprietary platform will provide us with significant benefits in terms of flexibility and scalability to integrate new innovations and changing industry standards into our revPAY platform without significant incremental cost.

Our Group's R&D initiatives have resulted in the successful development of our multi-channel payment platform named revPAY, as well as our line encryption system named XANZO, which qualified Revenue Techpark as a MSC status company in 2011. In 2016, Revenue Techpark's MSC status was renewed for another 5 years.

As at the LPD, our IT team consists of 35 skilled IT personnel and is led by Ng Shih Fang, our Executive Director and Group Chief Technology Officer. Our IT personnel are well trained and proficient in software programming languages such as Java, C, C++ and PHP. We can customise electronic payments infrastructure and solutions based on customers' specific requirements either in terms of hardware and/or software. For example, we were responsive to changes in payment cards' authentication method implemented by domestic financial institutions (i.e. from Signature-based to PIN-based) and were able to provide our customers with solutions to accommodate the required changes.

We keep abreast with the latest industry trend through our in-house R&D activities to enhance the overall payment solutions in terms of quality, efficiency and security. In addition, with the expertise and experiences gained throughout the years, we are better positioned now to respond to the latest technology changes in the local electronic payments industry.

Experienced key senior management team

Our ability to compete effectively lies, amongst others, on the strength of our key senior management team. Our Group has in place, an experienced key senior management team comprising capable and qualified professionals with extensive management, operating and in-depth industry knowledge and hands-on in their respective fields.

Our Group is led by our founder who is also our Managing Director and Group Chief Executive Officer, Ng Chee Siong, who has 15 years working experience in the electronic payments industry.

He is supported by our key senior management team consisting of qualified personnel, each possessing varying years of experience in their respective fields including merchant acquisition and IT. Their presence and leadership within our Group can help to ensure smooth internal operations and sound business decision making process. At the same time, the key senior management team also comprises a balanced mix of experienced personnel and young personnel.

Established working relationship with customers and partners

Due to the nature our business, we work closely with our customers and partners that include financial institutions as well as both Physical Store Merchants and Online Store Merchants. We have been maintaining a good working relationship with many of our financial institution customers. AmBank has been our longest financial institutions customers since 2004, followed by MyDebit (MEPS) since 2007, Affin Bank Berhad and OCBC Bank (Malaysia) Berhad since 2009 as well as UnionPay since 2011. There has been no major dispute experienced by our Group with our customers or partners so far. Our Group believes that these established good working relationships with our customers and partners can only help us to spur growth of our business in the future.

* Please read this section in conjunction with the Section 7.16 from page 99 to page 102 of Revenue Group Berhad’s Prospectus dated 11 June 2018.