The link highlighted below contains an ASX release made this afternoon by Novatti Group Limited (NOV.ASX), announcing that they have signed a deal to support WeChat Wallet for financial transactions for Chinese consumers in Australia.
NOV – WeChat Wallet for Chinese Consumers in Australia
- Novatti Group Limited (“Novatti” or “the Company”) signed an agreement that will allow Chinese consumers to make purchases in Australia using WeChat Wallet on their mobile phones.
- The deal provides a new recurring revenue stream for Novatti that is leveraged to the Chinese tourism boom.
- WeChat is China’s largest social media messenger app with more than 700 million registered users.
- Chinese tourists have difficulty using credit cards in Australia as they are not on the global payment networks and WeChat Wallet provides them one of the easiest ways to use e-payments here.
- More than one million tourists from China expected to visit Australia this year, spending an estimated $2.5 billion on retail goods.
- Thousands of Australian retailers are expected to adopt WeChat Wallet this year – up from over 100 currently.
- Further validation of Novatti’s payment platforms and services as WeChat is owned by Tencent Holdings Limited (Market Capitalisation HK$1.9 trillion / AUD$320 billion).
“The spending power of the booming Chinese tourist segment in Australia is huge, and we have helped enable a major new payment method for them. This deal further demonstrates that Novatti is quickly establishing itself as a leader in the global payments industry and we are expecting to finalise new commercial agreements with other global giants in the near future.” said Peter Cook, Chief Executive Officer of Novatti.
Baker Young Commentary
- This is major new payment method for Chinese and international tourists and provides them with a very easy (if not the easiest) way of making payments in Australia.
- WeChat is the most popular social media messaging App in China and highlights the ability of Novatti to transact with market leading companies.
- Novatti have continued to execute deals with notable blue-chip entities, which we believe is a true validation of the broad suite of payment technologies that Novatti offers.
- It is exciting to get to access to the growing number of Chinese in Australia, not only within the booming tourism industry, but also the growing number of Chinese students that reside here.
- Whilst terms are confidential we believe this agreement will have a material impact on revenues.
- The Company is executing their SaaS focused strategy and continues to focus on increasing its recurring revenue base.