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For entrepreneur Anthony Koh, his passion to create and innovate almost always means taking the road less travelled. “My main motivation in life is to spur and drive changes in the landscape, to shape the ecosystem and behaviours in an industry,” said the Chief Executive Officer of SGX-listed digital payments services firm MC Payment Ltd. That involves rocking the boat, going against the grain, and taking risks, which can make any entrepreneur feel alone. “It’s a lonely life,” Koh admitted. “That’s why it’s important to cultivate positivity and maintain your mental health - you need to be very self-motivated to be able to continue and excel in this journey.” Koh holds a Bachelor’s degree in Electrical and Electronic Engineering with Honours from Singapore’s Nanyang Technological University, and a Master in Business Administration from Andrews University in the US. He has been the driving force behind a number of successful start-ups, some of which date back to the dot-com days. One of his start-ups had also been successfully acquired by a listed company. |
Anthony Koh, CEO of MC Payment.
MC Payment’s journey began in 2005, when Koh co-founded the company to provide mobile payment services for businesses on the go. It started off by providing wireless Point-of-Sale (POS) devices using a mobile phone and a portable credit card reader.
“However, as technology and the payment landscape evolved, businesses were forced to confront the demands of digital transformation, and merchants needed a unified platform for the diverse and multiple payment methods out there,” he said.
“So we fulfilled that need by building on our existing service offerings to provide an end-to-end, one-stop payment solution for our clients.”
Today, MC Payment is an online-to-offline (O2O) fintech company with a platform that serves merchants in the retail, transportation and food and beverage industries. In February, it made its Catalist debut on SGX, following the successful completion of a reverse takeover (RTO) of Artivision Technologies.
The Group is the first and only digital payments company to be listed in Singapore, and one of six companies in the city-state holding a major payment institution licence for merchant acquisition awarded by the Monetary Authority of Singapore (MAS).
Apart from Singapore, MC Payment also has a presence in three other markets – Malaysia, Indonesia and Thailand – with ambitions to become a regional player.
Retaining its Edge
The Group enjoys a competitive edge with its omni-channel, unified commerce capabilities, leveraging on its position as one of the few licensed payment providers with a Southeast Asian footprint and scalable payment infrastructure.
The Group offers merchant payment services (MPS) and digital commerce-enabling solutions (DCES). Under MPS, the company provides payment processing services through its digital platforms and software. Under DCES, the company offers ancillary services such as the sale and lease of smart POS terminals, as well as proprietary and licensed software-as-a-service.
The Group derived about 85% of total revenue from its MPS segment, with the remaining 15% coming from its DCES division, in 1HFY20.
Future growth avenues include penetrating new geographical markets through mergers and acquisitions, joint ventures and/or franchises. “We’re targeting markets with high population densities and younger demographics, such as the Philippines and Vietnam, as well as those with rapid technology adoption rates,” Koh said.
Other plans in the pipeline involve integrating new technologies such as blockchain, artificial intelligence (AI) and big data analysis into its current platforms, as well as rolling out value-added services for merchants, to boost customer retention and expand its client base.
“Our core value is, and must continue to be, innovation,” he pointed out. “As a fintech player, and with technologies in the industry constantly changing, we have to adapt and evolve to stay relevant. What works today may not work as well, or at all, tomorrow.”
Koh believes the Group’s listing comes at an opportune time, with digital payments surging in Southeast Asia amidst the rise in online and e-commerce transactions following COVID-19. The implementation of safe-distancing measures by respective governments, and reduced human-to-human exchanges due to public health concerns, have also accelerated cashless transactions.
“We’ve seen major changes in consumer behaviours, such as increased use of mobile phones for online and electronic commerce. Demand for online payment methods and value-added services have also surged,” he added.
E-Payments to Surge
Amidst these disruptions, the global payments industry is coming to grips with the digital shift of retail and business-to-business (B2B) customers, a World Payments 2020 report noted.
Asia leads the growth in non-cash transactions globally, registering a five-year compound annual growth rate (CAGR) of 24% to US$244 billion in 2019, driven by its soaring Internet economy, the report added.
Similarly, digital payments in ASEAN are forecast to triple to US$1.5 trillion by 2030, data from a HSBC Global Research report showed.
In Singapore, the total transaction value of digital payments is forecast to expand by a CAGR of 22.7% between 2021 and 2025, resulting in a total projected amount of US$25.4 billion by 2025, according to Statista. The market's largest segment is digital commerce, which is estimated to reach a total transaction value of US$7.3 billion this year.
Given prevailing trends, MC Payment is well-placed to capitalise on this significant and growing market opportunity, Koh noted. “The future of the digital payments industry looks good. With the advent of 5G mobile technology, blockchain and AI, the outlook is even brighter.”
The tightly regulated nature of the payments industry is another plus.
“Our cross-border licences have given us a first-mover advantage,” he added, referring to MC Payment’s regional licences in Singapore, Malaysia, Indonesia and Thailand.
“These payment licences take a long time to be awarded - up to two or three years - which serves as a strong entry barrier.”
At the same time, Koh is focused on managing social and governance issues in MC Payments’ ESG framework. His priorities are attracting and retaining talent for the Group’s future growth, as well as monitoring regulatory changes in the fintech industry and ensuring strict compliance with evolving standards.
“One major uncertainty is changing regulations in the landscape, which create unknown disruptions,” he said.
“It’s also hard to find people with the relevant domain expertise - we need talent who understand the ecosystem and are forward-thinking, so that we can drive change in the industry.”
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Outside the office, the 50-year-old father tries to inculcate in his son, 16, and daughter, 20, the values of self-motivation and adaptability. “I always tell them to take the initiative - things will not just drop into their laps. Ideas without action equal zero. It’s important to do your best and work at it. Even if you fail, you must keep going and never give up!” |
MC Payment Ltd
MC Payment is principally engaged in the provision of merchant payment services and digital commerce enabling services, offering online-to-offline (O2O) solutions through a fully integrated platform with a focus on servicing merchants in the retail, transportation and food and beverage industries. Its end-to-end payment platform offers comprehensive solutions for merchants, ranging from hardware and software to data analytics and other technology-driven, value added services tailored to specific industries. Its solutions cater to merchants with both on-line and off-line presences, provided through a unified platform digitalising engagements across all channels. The Group has a presence in four geographical markets - Singapore, Malaysia, Indonesia and Thailand - with ambitions to become a regional player.
The company website is: mcpayment.com
Click here for the company's StockFacts page.
For the Group’s consolidated statement of profit/loss for FY2017-FY2019, click here.
Article was first published on SGX's kopi-C: the Company brew
Text: Jennifer Tan-Stanisic
Photo: Company file
kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.
For previous editions of kopi-C: the Company brew, please click here.
