AMTD Digital Continues Acquisition Spree in Singapore with FOMO Pay
AMTD Digital, the integrated digital solutions platform of AMTD Group, announced that it will acquire a controlling stake in FOMO Pay, a QR payments provider, via its “Fusion-in” programme, which involves using a combination of share swap and cash for investment. The acquisition is subject to the Monetary Authority of Singapore’s (MAS) approval.
FOMO Pay is a well known Singaporean player that enables merchants to accept a full suite of digital payments in Singapore and it recently expanded its operations to Malaysia through a partnership with OCBC.
This is AMTD Digital’s third controlling stake acquisition in Singapore’s fintech industry recently, following the acquisitions of insurtech startup PolicyPal, and private securities exchange operator CapBridge. In its media statement, they said this reinforces its strategic expansion in South East Asia with Singapore as its global headquarters.
The company said it is aiming to build a “one-stop, comprehensive, cross-market, innovative digital financial services platform” by leveraging its licenses to build digital banking, digital insurance, digital payments, and other services across South East Asia and the Greater Bay Area. The Greater Bay Area consists of Guangdong, Hong Kong and Macau.
In June 2020, Airstar Bank, one of the only eight virtual banks in Hong Kong jointly established by AMTD and Xiaomi, was officially launched to the public. AMTD is also leading the consortium together with SP Group, a Singapore government-owned leading energy utilities provider in Asia, Xiaomi, and Funding Societies to jointly apply for the Singapore digital wholesale banking license.
They also previously revealed in an interview that they are seeking a digital banking license in Malaysia.
Calvin Choi, AMTD Group’s Chairman and CEO and AMTD Digital’s Chairman, commented,
“Payment is the starting point and core infrastructure of the FinTech industry. AMTD sees tremendous potential of FOMO Pay’s payment business growth in Singapore and other countries across Southeast Asia. Most importantly, together with FOMO Pay’s capability to offer diversified digital payment solutions through other digital finance platforms and products offered by other AMTD’s subsidiaries or ecosystem partners, AMTD is able to provide a true one-stop user journey to its customers.
Louis Liu Xi, FOMO Pay’s co-founder and CEO, said,
“Joining AMTD Digital will strengthen FOMO Pay’s credibility and liquidity to facilitate higher requirement on handling cross-regional payments by international clients. FOMO Pay will benefit from AMTD’s extensive connectivity and network in Greater Bay Area, mainland China and Southeast Asia, as well as rich experiences in financial operation and licenses application, which would catalyze FOMO Pay growth to march into the broad Southeast Asia’s digital markets, further complement FOMO Pay’s payment exchange network, develop more high-quality customers, and promote financial inclusion and digital innovation in the region. FOMO Pay has also established cooperation with EMQ, another Asia’s leading digital remittance company within the AMTD SpiderNet ecosystem. FOMO Pay will leverage on AMTD’s extensive digital licensed businesses portfolio to accelerate innovation and provide corporates and merchants with a full value chain product suite.”
AMTD said that it has designated South East Asia market as its strategic priority for expansion. It recently became the first corporate founding member of the ASEAN Financial Innovation Network (AFIN) and through that AMTD partnered with AFIN to established SGD$ 50 Million ATMD ASEAN-Solidarity Fund.
This is followed by an announcement in May where AMTD, MAS, and Singapore Fintech Association announced the launch of a SGD$ 6 million to support Singapore based fintech firms affected by COVID-19.
They subsequently launched a SGD$ 5 million fund together with Xiaomi Finance to support fintech talent development in Singapore with prominent local universities.