Business

Wednesday November 15, 2006

Mobile Wallet user base to double to 4 million



PETALING JAYA: Mobile Wallet Sdn Bhd, which plans to be listed on the Mesdaq market in 2008, expects to double its subscriber base to four million by end-2007.

The company, which provides a mobile service that allow customers to use cellular telephones to make pre-paid payments instead of cash or credit cards, is banking on a RM2.5mil capital injection from Mavcap Biotech Sdn Bhd, Malaysia Venture Capital Sdn Bhd's life science and biotechnology venture capital arm.

Speaking after an investment agreement signing between the company and Mavcap Biotech yesterday, chairman Wong Say Ho said Mobile Wallet was targeting to capture 20% of the current mobile user base of over 20 million.

He said the company, which had over the last one month appointed 400 agents (to facilitate the membership registration and sale of reloads), also planned to increase the agent network to 30,000 and tie up with 10,000 merchants by year-end.

Based on proprietary mobile commerce technology, Mobile Wallet provides wireless payment services for the purchase of, among other things, prepaid reloads for mobile users, insurance, entertainment, ticketing, advertising and utility bills.

Wong said the fresh fund from Mavcap Biotech would enable the company to accelerate its business growth and tap the emerging opportunities overseas.

“Mavcap Biotech's equity participation would help boost Mobile Wallet in all areas especially in research and development (R&D),” he said.

He said the fund would mainly be used to enhance its R&D activities, marketing and business expansion next year.

“The fund will enable us to venture abroad into neighbouring countries like Thailand, Indonesia and the Philippines as well as to tap the huge opportunities in China next year,” he added.

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