Business Model Not Adversely Impacted by Proposed Online Finance Regulations in China
Melbourne, Aug 10, 2015 AEST (ABN Newswire) - Mobile and online payments platform and logistics software provider SmartTrans Holdings Limited (
ASX:SMA) responds to recent media reports about plans by the central bank in China to tighten regulations around online finance and payments:
- The proposal to limit the amount an individual may pay online without identity verification to CNY5,000 (~AUD$1,096) will not affect SmartTrans, as the majority of payments processed through its SmartPay platform in China are for small amounts, typically CNY5.00 - CNY10.00 (~AUD$1.00 - AUD$2.00).
- The Company points out that the reported purpose of these new regulations is primarily to impose stricter rules on the providers of online finance, an area in which SmartTrans is not engaged.
- If SmartTrans' customers or third party billing partners have the need to process payments over the proposed limit of CNY5,000, the Company already has a banking facility in place with UnionPay which complies with the new rules and which could facilitate this.
SmartTrans Managing Director Bryan Carr stated: "While these new regulations do not affect our business in China, which is based on a high volume of typically smaller payments, we welcome them, as they will lead to a more robust and transparent online payments and finance sector there."
About SmartTrans Holdings Limited
SmartTrans Holdings Limited (ASX:SMA) is a leading Australian technology and software provider that has developed a mobile and online billing and payment platform for the China market The company has agreements in place with China Mobile, China Unicorn, China Telecom CMPay, UnionPay and Alipay. With the growing use of the smartphone as a billing device in China, the company is experiencing significant uptake of its technology in that market. SmartTrans has also developed cutting-edge proprietary logistics software which is used by some of Australia's leading blue-chip organisations who have long term contracts in place with the company. SmartTrans is assessing growth opportunities for its logistic offering in China to complement its mobile and online payments platform.
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