JAKARTA (TheInsiderStories) – Weyland Tech Inc. (OTCQX: WEYL) has exercised its option to acquire 31 percent beneficial ownership of PT Weyland Indonesia Perkasa (WIP), owner and operator of the fast-growing AtozPay and AtozGo platforms. The online mobile application platform based in the United States, expects to complete the transaction before the end of October.
“We had spun AtozPay off to our shareholders last year but retained the option to secure this 31 percent position of WIP at nominal cost. We believe this ownership position will substantially enhance Weyland Tech’ shareholder value.” said Brent Suen, president and CEO of Weyland Tech in an official statement.
The AtozPay mobile payments platform serves the burgeoning m-Commerce and e-Payment markets in Indonesia, the world’ fourth most populous country. So far, AtozPay has attracted several major partnerships that enable mobile payment for goods and services.
AtozPay recently announced it joined forces with Grab, an online-to-offline mobile platform in Southeast Asia, to promote its new AtozGo short-distance food delivery service in Jakarta. Grab is supporting a new AtozGo co-marketing campaign targeting food establishments and mobile users in certain areas of Jakarta.
The new campaign is building off AtozGo’ successful pilot launch addressing a single square block of Jakarta that is now generating more than 1,500 deliveries a day. This area comprises 15 building complexes, of which three are currently generating the bulk of the volume.
Following the rollout with Grab, AtozGo expects to expand to other areas of the city, along with the possibility of a strategic investment by Grab.
“AtozGo address the need for a hyper-local, pedestrian-powered food delivery service that can make food delivery from local establishments quick and easy for office workers and urbanites,” Suen stated.
He continued, Weyland will continue cross-selling of its CreateApp solution to businesses that have adopted the AtozPay e-wallet solution, but now adding food service businesses that can benefiting from AtozGo. Weyland is also expanding its marketing efforts to address specific affinity groups and everyday product merchants who are currently underserved in Indonesia.
Early of 2019, Weyland Tech has get an approval from Bank Indonesia (BI) for its co-branded online electronic money (eMoney) license. The global provider of mobile business applications has formed a strategic partnership with Indonesian telecom services and bill payment provider, PT Finnet Indonesia. Both parties has sighned the partnerships in August 2018.
Finnet founded in 2005, is 60 percent owned by telecommunication provider PT Telkom Indonesia Tbk (IDX: TLKM), the largest provider of telecom services in the country. Currently, the provider is the largest fixed-line provider with over 10 million households and businesses as their clients.
In August 2018, Weyland signed an agreement with Finnet to provide QR code based services to Weyland’ AtoZPay branded customers and to Finnet’ customers. Currently, in Indonesia and many other emerging markets where cash payments are the standard, mobile smartphone users make payments in cash to ‘agents’ and then receive credit on their phones via a scratch-off card.
Furthermore, Finnet and AtoZPay have applied to the Bank Indonesia for licensing approval to provide the QR code-based service to customers of which only 34 large banks and telecom services companies hold. The license was approved on Jan. 18, 2019 and the joint launch will begin Feb. 15, 2019.
“Leveraging both Finnet’ 80,000 and ATM network also channel relationships with retail chain Alfamart (14,000 locations) is expected to provide upside to our current forecasts which rely solely on AtoZPay’s own direct sales,” claimed Suen.
Hermawanto Djunaedy, President Director of AtoZPay comments, “Our partnership with Finnet is expected to accelerate adoption to over 200,000 merchant outlets using AtoZPay QR technology after our expected launch on February 15th.”
Weyland is targeting $100 million in Gross Transaction Volume (GTV) by 2020. Recent initial public offerings and transactions, including the acquisition of Kudo by Grab Pay for $100 million, value eWallet companies at as high as 2.4X to 4X GTV.
by Linda Silaen, Email: linda.silaen theinsiderstories.com