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TORONTO, Sept. 26, 2017 /CNW/ - First Global Data ("First Global" or the "Company") is very pleased to announce that it has entered into a Binding Memorandum of Understanding ("MOU") with China Smartpay to deliver cross border payment solutions for Chinese vacation travelers and students studying overseas.
There are large numbers of students of Chinese origin studying abroad and then returning to China after completing their international studies. According to the State Council The People's Republic of China (http://english.gov.cn/state_council/ministries/2017/03/01/content_281475581664446.htm), "In 2016, 544,500 Chinese students studied overseas, 144,900 people more than 2012; while the number of returnees in 2016 was 432,500, up 159,600 than 2012," said Xu Tao, head of the international division of the ministry.
The challenge for these students when they are overseas is access to funds for payment of tuition and to have access to local currency they need for other expenses.
The Chinese middle class has grown rapidly over the years. More and more Chinese are traveling internationally and shopping. According to Jing Daily (https://jingdaily.com/report-chinese-shoppers-bought-almost-half-the-worlds-luxury-goods-in-2015/) 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)". According to Fung Global Retail and Tech (https://www.fungglobalretailtech.com/research/global-chinese-shoppers-carry-spending-momentum-2016/). 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."
Even with the significant growth, it is very difficult for these travelers to make payments overseas in part because of the low penetration of credit cards in China, limited access to their funds when they are overseas, conversions into foreign currencies, and regulatory guidelines both in China and overseas which must be met.
According to Mr. Xiong, the President of China Smartpay Group Holding, "Chinese outbound tourism will continue to experience consistent rapid growth. In 2016 Chinese outbound tourists spent 216 billion US dollars, of which the United States accounted for 120 billion US dollars. This shows that the North American market is one of most important destinations for Chinese tourists. This growth is being aided by the rapid development of Chinese financial technology along with overseas partnerships to reach Chinese tourists outside of China. China Smartpay Group Holdings Limited is a Hong Kong listed company which is engaged in smart payment and internet finance. In China, the company owns the nationwide prepaid card license an internet payment license, and the leading smart POS technology systems. It has built an industry leading team and technology, and has aligned with strategic partners to become an industry leader. China Smartpay Group has accumulated rich experience in internet payment and mobile payment solutions and is partnering with First Global Data for its leading technology, licenses, and wide payment network and capabilities in North America to carry out the North American market mobile payment business."
"We are very pleased to be partnering with China Smartpay. China Smartpay is a highly respected organization and we have developed a strong level of respect and trust for each other. First Global and China Smartpay will jointly deliver cross border and other payment services to address these significant needs and growing market opportunities. We intend to leverage China Smartpay's strength and licenses in China to originate transactions from China, couple that with First Global's overseas licenses and cross border payments capabilities to ensure compliant cross border transactions, and First Global will terminate these transactions to beneficiaries which are individuals and retailers outside of China. We believe that the combined strengths of both companies will position us well to capture market share in this sizeable and expanding market", said Andre Itwaru, Chairman and CEO of First Global Data Limited.
About China Smartpay (www.chinasmartpay.com/en)
China Smartpay is China's leading payment solutions company. The China Smartpay Group Holdings (8325.HK) is a Hong Kong-listed company which is engaged in smart payment and internet finance. The company owns the nationwide prepaid card license and internet payment license, and possesses leading smart POS technology and systems. By cooperating with capable and well-known strategic partners, China Smartpay is able to take a leading position in the payment industry. China Smartpay's payment business will be based on prepaid cards, and expand into internet payment, mobile payment, and O2O, etc. in order to serve customers of various types, and establish a vast real-name account network. In the long term, such account network will become the platform for integrated and personalized financial services.
About First Global Data Ltd. (www.firstglobaldata.com)
First Global is an international financial services technology ("FINTECH") company. The Company's two main lines of business are mobile payments and cross border payments. First Global's proprietary leading edge technology enables the convergence of compliant domestic and cross border payments, shopping, Peer to Peer ("P2P"), Business to Consumer ("B2C"), and Business to Business ("B2B") payments. First Global enables its strategic partners and clients around the world with our leading edge financial services technology platform.
Neither TSX Venture Exchange Inc. ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Information:
This news release contains "forward-looking information" within the meaning of applicable securities laws. Although First Global believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because First Global can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. First Global undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of First Global, its securities, or financial or operating results (as applicable). First Global disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
SOURCE First Global Data Limited