Sumitomo Mitsui Card Company Signs MOU with Soft Space Sdn Bhd

Agreement of business partnership regarding payment solutions in ASEAN and Japan market between Soft Space Sdn. Bhd. and Sumitomo Mitsui Card Company

Sumitomo Mitsui Card Company (hereinafter “SMCC”) (Head office: Japan, CEO : Ken Kubo) and Soft Space Sdn Bhd. (hereinafter “Soft Space”) (Head office: Malaysia, CEO: Chang Chew Soon), a FinTech company, has signed a Memorandum of Understanding (MOU) to offer innovative payment solutions in Southeast Asia and Japan on 13th January 2017 at the Malaysian Investment Development Authority HQ in Kuala Lumpur.

In 2014, SMCC started their Singapore office as their 2nd research office which mirrored the Silicon Valley office in the US (US office was opened in November 2012), researching on the FinTech landscape and its application to SMCC’s core business. The Singapore office focused on market research for business expansion in the Southeast Asia payments market. This Agreement is the first partnership and first step for SMCC to expand its business presence in Southeast Asia

Founded in 2012, Soft Space provides mobile payment solution in both developed and emerging countries within the region and has presence in 10 countries, with over 20 banks and financial institutions licensing its mobile payment technology. With its fast growth, Soft Space is becoming the leading Fintech company in Asia.

Soft Space with its wide variety of innovative payment solutions such as a mobile Point of Sales (mPOS) has enable both large and small businesses in accepting payments. Leveraging on the growth of smart mobile devices, Soft Space provides easy integration for businesses to integrate into its Point of Sales (POS) or to any other third party applications. Powered by its centralized EMV level 2 processing technology, Soft Space’s solutions is nimble enough to serve various industries such as airline, insurance, logistics, and etc.

As part of the collaboration, SMCC will introduce Soft Space’s solution to Japanese companies and local banks that are in partnership with Sumitomo Mitsui Financial Group. SMCC, which has vast experience in a variety of payment solution, will provide suitable payment solutions based on the unique environment of Southeast Asia.

Through this alliance, SMCC will consider issuing co-branded card (Issuing business) and provide payment acceptance points to merchants (Acquiring business) in Southeast Asia.Simultaneously, SMCC hopes to introduce Soft Space’s solution in the Japan market to cater to the needs of its customers.

To date, SMCC has developed relationships with Fintech companies such as Square Inc. and Stripe Incs , which are US-based companies, by business and capital alliance. SMCC will continuously seek for new business alliance with all startups not exclusive to FinTech companies in Southeast Asia.

On congratulating Soft Space and SMCC on this collaboration, YB Datuk Chua Tee Yong, Deputy Minister of International Trade & Industry said, “The sealing of the collaborative venture between both companies today is a significant milestone not only for Soft Space, but also for Malaysia. This reflects that Malaysian technology companies are of international standards and able to meet stringent global requirements. The fact that SMCC, a member of the Sumitomo Mitsui Financial Group – a top Japanese conglomerate, have chosen a Malaysian company for its expansion into the ASEAN payment market, underscores the creative capabilities in the country.”

"I am happy to note that the incentives provided by the Government has accelerated Soft Space’s growth and innovative capabilities in a shorter period of time than expected. The assistance has enabled Soft Space to build a stronger R&D foundation and continuously introduce innovative products," YB Deputy Minister further added. Soft Space has been granted the Domestic Investment Strategic Fund (DISF) and Pioneer Status Incentive for high technology industry by MIDA in December 2013.

“I am very happy with the collaboration as it is a strong testament of Malaysian talent and Malaysian’s ability to expand internationally”, said Chang Chew Soon, CEO of Soft Space. He added that SMCC embracement of Fintech provides evidence on the viability of Fintech and provides leadership to other banks in embracing Fintech.

Senior Managing Director and Representative Director of SMCC, Kazunori Okuyama said, "We are truly happy to announce the partnership with Soft Space and so excited to start working with their team in the ASEAN region and Japan. We strongly believe that the solution of Soft Space has huge potential for the payment innovation with their flexible technical ability and speed-to-market. That will definitely help us to expand our reach to new customers and new markets."

About Soft Space

Soft Space is a mobile payments technology company, headquartered in Kuala Lumpur, Malaysia. Established in March 2012, Soft Space focuses on the development of innovative solutions for the banking and payment industry.

The Soft Space Mobile Point-of-Sales solution aims to revolutionize payments. It is certified by EMV, PCI and major card schemes; making it secure, credible and recognized globally. Soft Space is known as the first company in Asia to obtain a centralized EMV Level 2 certification for cloud-based server.

Soft Space’s vision is to empower all businesses and individuals to accept multiple forms of card payments by being a technology enabler for financial institutions. Its centralized m POS platform is designed to address the fragmented market of Asia, the main beneficiary of m POS. The company has a presence in 10 countries, with over 20 banks and financial institutions licensing its mobile payment technology. These achievements are recognized and supported by the Malaysian Investment Development Authority (MIDA) and the company has become among one of the fastest growing Fintech companies in ASEAN.

About SMCC

As the pioneer in the issuance of the VISA Card in Japan and a leader in Japanese credit card industry, SMCC enjoys the strong support of its many customers and plays a major role as one of the strategic businesses of Sumitomo Mitsui Financial Group since the inception in 1967.

Leveraging its strong brand image and its excellent capabilities across a wide range of card-related services, SMCC provides financing services fulfilling diversified customer needs in Japan. Through our business operations, SMCC aims to actively contribute to the realization of convenient and affluent consumer lifestyles and make further dramatic advances as a leading brand in Asian payment sector.

[ SMCC Business Profile ]

■ Credit card services

Shopping services for cardholders; settling accounts with affiliated merchants

■ Credit finance

Loans to cardholders; cashing services; revolving/installment payments;

loan guarantee Business

■ Sales promotion

Issuance of gift certificates; other services for cardholders and affiliated merchants

■ Ancillary businesses

Payment collection agency services; operational service provider (card issuance,

invoicing cardholders, settlement of accounts of other cards)

About MIDA

Malaysian Investment Development Authority (MIDA) is the government's principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967, MIDA is the first point of contact for investors that want to take advantage of Malaysia’s vibrant economy, world-class infrastructure and business-friendly environment to set up their profit centre in Asia.

For more information, please contact:

Ms Noor Aieda Ahmad

Director, R&D and Business Services, MIDA

Tel.: 03-2267 6688 | Email: [email protected]

Posted on : 13 January 2017
Last Updated : Thursday 17th January 2019