January 16, 2018
First Global signs definitive agreement for mobile payments for Chinese vacationers in U.S.
TORONTO -- First Global Data is very pleased to announce that it has entered into a Definitive Agreement with China Smartpay to deliver cross border payment solutions for Chinese vacation travelers and students studying overseas.
n September 26, 2017 the Company announced that it had entered into a binding MOU with China Smartpay.
First Global's implementation team has also recently returned from Shanghai and is working closely with China Smart Pay to implement the solution.
The service will allow WeChat users in China to travel to the United States, shop at a U.S. retail location, and purchase goods using the funds on their WeChat mobile wallet. There are close to one billion users on the WeChat mobile platform globally and as noted in the September 26, 2017 press release, in 2015 "Chinese shoppers bought almost half of the world's luxury goods"…"The outbound Chinese tourist numbers reached 120 million in 2015"…and "Chinese consumers spent 1.2 trillion yuan ($183 billion)". By 2020, they estimate that "186 million Chinese tourists will travel overseas"…and that "their total overseas spending will reach US$349 billion per year."
First Global, through its money transmitter licenses will ensure that each transaction complies with US regulatory guidelines. In addition, First Global will be responsible for retrieving the consumer funds from their mobile wallets and settling all transactions with the U.S.-based merchants. Merchants will pay First Global a percentage of the gross dollar value of the goods purchased, which is the existing model used for purchases made with credit cards today. First Global will share revenues with China Smartpay.
"The U.S. is one of the most frequented countries for Chinese vacationers. The benefit for U.S. retailers can be significant as this provides them with access to a relatively new and very large base of shoppers. In addition, retailers will benefit from accepting payments from the leading edge mobile payment service implemented by First Global. Deploying services in the U.S. is intended to be phase one and we will keep our shareholders updated as the project evolves. From my perspective, this initiative fits our Company like a glove. It leverages our cross-border capability, access to very large consumer base, our licenses, and is within our mobile centric payments and transactional revenue focus," said Andre Itwaru, chairman and CEO of First Global Data Limited.