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At NTT DATA Payment Services, we are committed to simplify and deliver solutions to create a seamless payment experience.

LATEST ANNOUNCEMENTS
21 Apr 2025

U MOBILE TRANSFERS GOBIZ MERCHANT ACQUIRING BUSINESS TO NTT DATA PAYMENT SERVICES IN STRATEGIC MOVE, WITH PLANS FOR FURTHER SME COLLABORATIONS

Key Highlights: U Mobile has entered into a strategic agreement to transfer its GoBiz merchant acquiring business to NTT DATA Payment Services. This is in line with U Mobile’s move to increase focus on supporting enterprises’ digitalisation ambitions, in light of the company’s appointment to imp...

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14 Apr 2025

NTT DATA Payment Services Strengthens Leadership: Enoch Chhabra Named CEO of Payment Services and e-pay; Yuichiro Sato Steps into Role as CEO of eCommerce Solutions

  From left to right: NTT DATA Payment Services: Sean Hesh - Group CEO & Executive Director, Enoch Chhabra - CEO of Payment Services and e-pay, Yuichiro Sato - CEO of eCommerce Solutions KUALA LUMPUR, 14 April 2025 – NTT DATA Payment Services Sdn. Bhd. is strengthening its le...

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28 Nov 2024

OFFICIAL NOTIFICATION OF COMPANY NAME CHANGE

We are pleased to announce that our company has officially changed its name from GHL Systems Berhad to GHL Systems Sdn. Bhd., and subsequently to NTT DATA Payment Services Sdn. Bhd., effective 13th November 2024. This name change marks an exciting new chapter for our organization, reflecting our in...

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8 Jan 2024

GHL OFFERS MASTERCARD CLICK TO PAY FOR SEAMLESS ONLINE CHECKOUTS

Key Highlights: GHL is offering Mastercard Click to Pay to 2,000 of its e-commerce merchants. With Click to Pay, consumers can instantly access their preferred payment cards without the need to manually enter their payment details at checkout. TGV Cinemas, one of Malaysia's leading cinema operators, will be among the first key merchant to enable Mastercard Click to Pay. GHL’s e-commerce merchants can now enjoy the benefits of Click to Pay without incurring any additional setup fees or merchant discount rate (MDR) costs, as this feature is automatically activated for them.  Kuala Lumpur, MALAYSIA: GHL Systems Berhad (GHL) is offering Mastercard Click to Pay to 2,000 of its e-commerce merchants. Click to Pay’s intelligent recognition facilitates a faster and improved checkout experience, giving consumers instant access to their preferred cards on every device, eliminating the need to manually enter card details or remember passwords. Designed to drive higher conversion rates for merchants while ensuring a secure payment solution for consumers, Mastercard Click to Pay offers the latest in payment security, and is available as a single integration across card networks leveraging the EMVco industry standard. In essence, Click to Pay mirrors the trusted Chip and Pin technology, tailored specifically for the world of e-commerce. In addition to its advanced security features, Mastercard Click to Pay simplifies online shopping by allowing consumers to use a single, secure profile for all their payment cards. This convenience is accessible across various devices, including smartphones, tablets, and PCs, consumers simply need to keep an eye on the Click to Pay icon when making their online purchases. GHL Malaysia’s CEO, Kevin Lee said,  “In today's digital era, consumers have driven a significant shift in expectations, placing an emphasis on simplicity, convenience, and security. With Click to Pay, merchants can now seamlessly meet these evolving consumer demands, offering a user-friendly, secure, and convenient payment experience that aligns perfectly with the expectations of the modern age. Mastercard Click to Pay is another strategic collaboration which will enable our customers to increase and improve the ways to pay continually.”  Beena Pothen, Country Manager, Malaysia and Brunei, Mastercard said, "Mastercard remains committed to offering a wide range of payment solutions to consumers in Malaysia. Mastercard Click to Pay is a smarter, and secure way to pay online, perfect for today’s digital first consumers. The solution delivers a more consistent experience for consumers that is fast and safe, without the need to enter their card credentials or store sensitive information with different merchants. Consumers have peace of mind, knowing that every purchase is transparent and protected by the highest industry standards.” GHL provides acquiring services and card payment acceptance solutions to retailers in-store, online, and via mobile. Adding Click to Pay to GHL’s e-commerce gateway services gives a seamless boost to merchants’ existing payment solutions without further integration. TGV Cinemas, Malaysia's leading cinema operator, will be among the key merchants to enable Mastercard Click to Pay, providing a hassle-free payment experience when purchasing movie tickets through their website. Spanning 39 locations nationwide, TGV also has over 3 million members in their cinema loyalty programme.  According to Statista, revenue in e-commerce in the Malaysia market is expected to reach USD8.75 billion (RM 41.89 billion) in 2023 and is expected to show annual growth rate of 13.26% up until 2027[1]. [1] Statista: eCommerce - Malaysia, 2023

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8 Jan 2024

GHL OFFERS MASTERCARD CLICK TO PAY FOR SEAMLESS ONLINE CHECKOUTS

Key Highlights: GHL is offering Mastercard Click to Pay to 2,000 of its e-commerce merchants. With Click to Pay, consumers can instantly access their preferred payment cards without the need to manually enter their payment details at checkout. TGV Cinemas, one of Malaysia's leading cinema operators, will be among the first key merchant to enable Mastercard Click to Pay. GHL’s e-commerce merchants can now enjoy the benefits of Click to Pay without incurring any additional setup fees or merchant discount rate (MDR) costs, as this feature is automatically activated for them.  Kuala Lumpur, MALAYSIA: GHL Systems Berhad (GHL) is offering Mastercard Click to Pay to 2,000 of its e-commerce merchants. Click to Pay’s intelligent recognition facilitates a faster and improved checkout experience, giving consumers instant access to their preferred cards on every device, eliminating the need to manually enter card details or remember passwords. Designed to drive higher conversion rates for merchants while ensuring a secure payment solution for consumers, Mastercard Click to Pay offers the latest in payment security, and is available as a single integration across card networks leveraging the EMVco industry standard. In essence, Click to Pay mirrors the trusted Chip and Pin technology, tailored specifically for the world of e-commerce. In addition to its advanced security features, Mastercard Click to Pay simplifies online shopping by allowing consumers to use a single, secure profile for all their payment cards. This convenience is accessible across various devices, including smartphones, tablets, and PCs, consumers simply need to keep an eye on the Click to Pay icon when making their online purchases. GHL Malaysia’s CEO, Kevin Lee said,  “In today's digital era, consumers have driven a significant shift in expectations, placing an emphasis on simplicity, convenience, and security. With Click to Pay, merchants can now seamlessly meet these evolving consumer demands, offering a user-friendly, secure, and convenient payment experience that aligns perfectly with the expectations of the modern age. Mastercard Click to Pay is another strategic collaboration which will enable our customers to increase and improve the ways to pay continually.”  Beena Pothen, Country Manager, Malaysia and Brunei, Mastercard said, "Mastercard remains committed to offering a wide range of payment solutions to consumers in Malaysia. Mastercard Click to Pay is a smarter, and secure way to pay online, perfect for today’s digital first consumers. The solution delivers a more consistent experience for consumers that is fast and safe, without the need to enter their card credentials or store sensitive information with different merchants. Consumers have peace of mind, knowing that every purchase is transparent and protected by the highest industry standards.” GHL provides acquiring services and card payment acceptance solutions to retailers in-store, online, and via mobile. Adding Click to Pay to GHL’s e-commerce gateway services gives a seamless boost to merchants’ existing payment solutions without further integration. TGV Cinemas, Malaysia's leading cinema operator, will be among the key merchants to enable Mastercard Click to Pay, providing a hassle-free payment experience when purchasing movie tickets through their website. Spanning 39 locations nationwide, TGV also has over 3 million members in their cinema loyalty programme.  According to Statista, revenue in e-commerce in the Malaysia market is expected to reach USD8.75 billion (RM 41.89 billion) in 2023 and is expected to show annual growth rate of 13.26% up until 2027[1]. [1] Statista: eCommerce - Malaysia, 2023

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19 Sep 2023

FEATURE: WHY DIGITAL LENDING IS THE NEXT FRONTIER FOR THIS MALAYSIAN PAYMENTS GIANT

Closing in on 30 years as a groundbreaking payment solutions provider in Southeast Asia, GHL Systems Berhad today can lay claim to an expansive payments footprint comprising over 452,800 touchpoints across Malaysia, Philippines, Thailand, Indonesia, Singapore and Australia. Now, GHL is pivoting its vast experience towards the digital loan and microfinancing segment in Malaysia. Since its inception in 1994 as a legacy payment processing and IT hardware business, GHL has successfully evolved into a full-stack software and merchant services solution provider. Over the years it has grown into Malaysia’s largest prepaid credit top-up and bill collection network, getting listed on the Bursa Malaysia stock exchange in less than a decade in 2003. Having acquired one of the largest merchant bases in the country, Malaysia-headquartered GHL sought to offer more diversified services — particularly to add value for the micro, small and medium enterprises (MSMEs) that make up a core pillar of the company’s value chain.  Bridging the Credit Gap among Underserved MSMEsAccording to Kevin Lee, Chief Executive Officer, Malaysia of GHL Systems Berhad, the company had been looking at the digital loan and microfinancing market for MSMEs in Malaysia as it feels they have been underserved for a long time.  “We have been exploring the possibility of venturing into lending/microfinancing for years as a strategic move to provide value beyond payments to all our stakeholders. These are very much the smaller merchants, you know, the tier three, tier four merchants,” said Kevin, with tier three merchants referring to those with turnover of less than RM100 million and more than RM5 million, while tier four is merchants with turnover below RM5 million. “While always keeping in mind to diversify our offering to include more value-added services to our merchants.”  Having been with GHL since 2009, Kevin is acutely aware of the digital loan financing gap for smaller businesses in Malaysia. “By diversifying into lending, we wanted to bridge the payment and credit gap among the financially underserved population.  “It also aligns with GHL’s commitment to deliver innovative solutions that support the growth of our merchant partners by addressing the financing needs of small and medium-sized enterprises (SMEs), which are crucial drivers of economic growth, helping them thrive in an ever-evolving business landscape,” he added. Making the Leap from e-Payments to e-Lending  As a Bank Negara Malaysia-mandated end-to-end payment services and solutions provider, processing transactions from all manner of merchants and banks, GHL is no stranger to a strict regulatory environment. But the digital loan space is strictly regulated, with many unscrupulous activities carried out by licensed and unlicensed lenders alike. “We prioritise compliance and strict adherence to regulatory standards in our lending business operations in Malaysia,” affirmed Kevin. GHL started offering working capital financing to its merchants in April 2022. Our Malaysia lending license is approved by KPKT under the Money Lenders Act. “So our lending license is approved by or regulated by KPKT (Kementerian Pembangunan dan Kerajaan Tempatan, AKA the Ministry of Local Government Development, Malaysia) under the Money Lenders Act,” said Kevin, adding that the company’s compliance efforts will extend to two broad areas.  “One is continuous regulatory monitoring. So our compliance team will continue to monitor changes in the regulatory framework, ensuring that the company remains fully compliant with evolving requirements. The other area, it’s really an area of policies,” he stressed. “So we have developed very comprehensive compliance policies and procedures that, first of all, are aligned with the Malaysian lending laws. So these policies cover very much how we do customer due diligence. AML (anti-money laundering), how we do KYC (or know-your-customer requirements), and also areas of data protection as well.”Tech, Experience a Stepping Stone to Lending Kevin also acknowledged the potential benefits of leveraging GHL’s technological expertise in payments to accelerate its capabilities in digital lending. “This is one area that we are actively exploring and also evaluating, because the idea is that we know these merchants, we know these customers. I mean, it’s our bread and butter in terms of providing that core payment processing service to them. “ Apart from technological leverage, the chief executive stated the company’s experience also aids in the understanding of market demand as well. “Understanding what the merchant wants, what the merchant needs” also supplies GHL with expertise in the increasingly competitive Malaysian digital loan space. Kevin insisted that the most important element is the right alignment with GHL’s long term strategic goals, which includes a continued focus at the beginning on its existing customers – merchant businesses that typically fall into the tier three or tier four quadrants. “The first approach needs to go back to those existing merchants using our payment acceptance services. So we can offer them our SME Digital Loan [product], giving them a special interest rate, because they are assisting customers. And we are also at the same time offering services to merchants new to GHL as well, packaging [loans and microfinancing] with our payment acceptance products together. So we are looking at assisting new merchants at the same time,” he announced.“Our goal is to really ensure that we cater to a broad spectrum of our merchants’ needs, effectively and also responsibly.”Differentiating GHL in a Competitive Digital Loan Market Kevin said that along with engendering financial inclusion for tier three and four SMEs (bigger corporations can secure loans from banks, leaving smaller merchants underserved), GHL will differentiate itself from the marketplace by offering speedy digital loan approvals and promising a fast turnaround time to disburse funds to merchants. “The other area is when we talk about the loan or the repayment deduction,” he went on, commenting that instead of the typical monthly repayment, GHL can leverage its funds processing and hosting to implement a unique bite-sized, daily repayment mechanism through the merchant daily settlement that the company can deduct from on a daily basis – giving the merchant more financial freedom and flexibility to make crucial business decisions. Kevin was firm in stating that lending services are more than just an experiment for GHL. It is a strategic move aimed at diversifying their portfolio and contributing to the economic empowerment of society. Looking ahead, lending will become a key pillar in the company’s business architecture, fulfilling a vital role in promoting financial inclusion. As the company continues to put in substantial investment and focus on their lending business, the market awaits with keen interest. Indeed, the strides GHL Systems Berhad has taken to bridge the financial inclusion gap, while serving a myriad of merchants’ needs, make it a story of innovation, commitment, and future growth. This article first appeared in Fintech News Malaysia on September 14, 2023  Source: https://fintechnews.my/39594/fintech-lending-malaysia/why-digital-lending-is-the-next-frontier-for-this-malaysian-payments-giant/

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19 Sep 2023

FEATURE: WHY DIGITAL LENDING IS THE NEXT FRONTIER FOR THIS MALAYSIAN PAYMENTS GIANT

Closing in on 30 years as a groundbreaking payment solutions provider in Southeast Asia, GHL Systems Berhad today can lay claim to an expansive payments footprint comprising over 452,800 touchpoints across Malaysia, Philippines, Thailand, Indonesia, Singapore and Australia. Now, GHL is pivoting its vast experience towards the digital loan and microfinancing segment in Malaysia. Since its inception in 1994 as a legacy payment processing and IT hardware business, GHL has successfully evolved into a full-stack software and merchant services solution provider. Over the years it has grown into Malaysia’s largest prepaid credit top-up and bill collection network, getting listed on the Bursa Malaysia stock exchange in less than a decade in 2003. Having acquired one of the largest merchant bases in the country, Malaysia-headquartered GHL sought to offer more diversified services — particularly to add value for the micro, small and medium enterprises (MSMEs) that make up a core pillar of the company’s value chain.  Bridging the Credit Gap among Underserved MSMEsAccording to Kevin Lee, Chief Executive Officer, Malaysia of GHL Systems Berhad, the company had been looking at the digital loan and microfinancing market for MSMEs in Malaysia as it feels they have been underserved for a long time.  “We have been exploring the possibility of venturing into lending/microfinancing for years as a strategic move to provide value beyond payments to all our stakeholders. These are very much the smaller merchants, you know, the tier three, tier four merchants,” said Kevin, with tier three merchants referring to those with turnover of less than RM100 million and more than RM5 million, while tier four is merchants with turnover below RM5 million. “While always keeping in mind to diversify our offering to include more value-added services to our merchants.”  Having been with GHL since 2009, Kevin is acutely aware of the digital loan financing gap for smaller businesses in Malaysia. “By diversifying into lending, we wanted to bridge the payment and credit gap among the financially underserved population.  “It also aligns with GHL’s commitment to deliver innovative solutions that support the growth of our merchant partners by addressing the financing needs of small and medium-sized enterprises (SMEs), which are crucial drivers of economic growth, helping them thrive in an ever-evolving business landscape,” he added. Making the Leap from e-Payments to e-Lending  As a Bank Negara Malaysia-mandated end-to-end payment services and solutions provider, processing transactions from all manner of merchants and banks, GHL is no stranger to a strict regulatory environment. But the digital loan space is strictly regulated, with many unscrupulous activities carried out by licensed and unlicensed lenders alike. “We prioritise compliance and strict adherence to regulatory standards in our lending business operations in Malaysia,” affirmed Kevin. GHL started offering working capital financing to its merchants in April 2022. Our Malaysia lending license is approved by KPKT under the Money Lenders Act. “So our lending license is approved by or regulated by KPKT (Kementerian Pembangunan dan Kerajaan Tempatan, AKA the Ministry of Local Government Development, Malaysia) under the Money Lenders Act,” said Kevin, adding that the company’s compliance efforts will extend to two broad areas.  “One is continuous regulatory monitoring. So our compliance team will continue to monitor changes in the regulatory framework, ensuring that the company remains fully compliant with evolving requirements. The other area, it’s really an area of policies,” he stressed. “So we have developed very comprehensive compliance policies and procedures that, first of all, are aligned with the Malaysian lending laws. So these policies cover very much how we do customer due diligence. AML (anti-money laundering), how we do KYC (or know-your-customer requirements), and also areas of data protection as well.”Tech, Experience a Stepping Stone to Lending Kevin also acknowledged the potential benefits of leveraging GHL’s technological expertise in payments to accelerate its capabilities in digital lending. “This is one area that we are actively exploring and also evaluating, because the idea is that we know these merchants, we know these customers. I mean, it’s our bread and butter in terms of providing that core payment processing service to them. “ Apart from technological leverage, the chief executive stated the company’s experience also aids in the understanding of market demand as well. “Understanding what the merchant wants, what the merchant needs” also supplies GHL with expertise in the increasingly competitive Malaysian digital loan space. Kevin insisted that the most important element is the right alignment with GHL’s long term strategic goals, which includes a continued focus at the beginning on its existing customers – merchant businesses that typically fall into the tier three or tier four quadrants. “The first approach needs to go back to those existing merchants using our payment acceptance services. So we can offer them our SME Digital Loan [product], giving them a special interest rate, because they are assisting customers. And we are also at the same time offering services to merchants new to GHL as well, packaging [loans and microfinancing] with our payment acceptance products together. So we are looking at assisting new merchants at the same time,” he announced.“Our goal is to really ensure that we cater to a broad spectrum of our merchants’ needs, effectively and also responsibly.”Differentiating GHL in a Competitive Digital Loan Market Kevin said that along with engendering financial inclusion for tier three and four SMEs (bigger corporations can secure loans from banks, leaving smaller merchants underserved), GHL will differentiate itself from the marketplace by offering speedy digital loan approvals and promising a fast turnaround time to disburse funds to merchants. “The other area is when we talk about the loan or the repayment deduction,” he went on, commenting that instead of the typical monthly repayment, GHL can leverage its funds processing and hosting to implement a unique bite-sized, daily repayment mechanism through the merchant daily settlement that the company can deduct from on a daily basis – giving the merchant more financial freedom and flexibility to make crucial business decisions. Kevin was firm in stating that lending services are more than just an experiment for GHL. It is a strategic move aimed at diversifying their portfolio and contributing to the economic empowerment of society. Looking ahead, lending will become a key pillar in the company’s business architecture, fulfilling a vital role in promoting financial inclusion. As the company continues to put in substantial investment and focus on their lending business, the market awaits with keen interest. Indeed, the strides GHL Systems Berhad has taken to bridge the financial inclusion gap, while serving a myriad of merchants’ needs, make it a story of innovation, commitment, and future growth. This article first appeared in Fintech News Malaysia on September 14, 2023  Source: https://fintechnews.my/39594/fintech-lending-malaysia/why-digital-lending-is-the-next-frontier-for-this-malaysian-payments-giant/

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28 Aug 2023

GHL PARTNERS STANDARD CHARTERED MALAYSIA TO EMPOWER MERCHANTS WITH COMPREHENSIVE PAYMENT SOLUTIONS

Kuala Lumpur, MALAYSIA: GHL Systems Berhad (GHL) and Standard Chartered Malaysia (the Bank) today announced a partnership to provide merchants with comprehensive payment solutions. The partnership aims to empower merchants with streamlined payment services to enhance their capabilities and competitive advantage, in line with their commitment to enriching payment experiences and further drive payment digitalisation in the country.As Standard Chartered’s payment service provider, GHL, will provide the Bank’s merchants with payment solutions at Point of Sale terminals, along with e-commerce payment processing services, to enhancecustomer experience. At the same time, GHL will also facilitate onboarding, offering personalised packages,installation, and efficient settlement processes.GHL Malaysia’s CEO, Kevin Lee said, “By capitalising on GHL's expertise and Standard Chartered's broad customer reach, merchants can now access a comprehensive suite of payment options tailored to theirunique needs. Using both organisation’s collective strengths, we aspire to equip merchants with the essential tools and resources they need to stay ahead in this competitive market. " Standard Chartered’s Country Head of Transaction Banking and Cash Products, Samuel Ding said, “Weare pleased to partner with GHL to empower merchants with this comprehensive payment solutions. This collaboration reflects our shared vision of driving innovation and enabling merchant to meet the growing demands and evolving needs of the payment industry.”

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28 Aug 2023

GHL PARTNERS STANDARD CHARTERED MALAYSIA TO EMPOWER MERCHANTS WITH COMPREHENSIVE PAYMENT SOLUTIONS

Kuala Lumpur, MALAYSIA: GHL Systems Berhad (GHL) and Standard Chartered Malaysia (the Bank) today announced a partnership to provide merchants with comprehensive payment solutions. The partnership aims to empower merchants with streamlined payment services to enhance their capabilities and competitive advantage, in line with their commitment to enriching payment experiences and further drive payment digitalisation in the country.As Standard Chartered’s payment service provider, GHL, will provide the Bank’s merchants with payment solutions at Point of Sale terminals, along with e-commerce payment processing services, to enhancecustomer experience. At the same time, GHL will also facilitate onboarding, offering personalised packages,installation, and efficient settlement processes.GHL Malaysia’s CEO, Kevin Lee said, “By capitalising on GHL's expertise and Standard Chartered's broad customer reach, merchants can now access a comprehensive suite of payment options tailored to theirunique needs. Using both organisation’s collective strengths, we aspire to equip merchants with the essential tools and resources they need to stay ahead in this competitive market. " Standard Chartered’s Country Head of Transaction Banking and Cash Products, Samuel Ding said, “Weare pleased to partner with GHL to empower merchants with this comprehensive payment solutions. This collaboration reflects our shared vision of driving innovation and enabling merchant to meet the growing demands and evolving needs of the payment industry.”

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17 Jul 2023

FEATURE: DIVERSE RANGE OF TALENT, SKILLSETS IN A TEAM VITAL

SunBiz gets the views of GHL Systems group CEO Sean Hesh How has your life experience made you the leader you are today?The experiences I gained from living and working across different countries has taught me the importance of cultural sensitivity and adaptability that have been essential in building strong relationships and driving business growth. What traits do you look for in your talent or how do you decide who is right for a job? While it is always easier to hire people who think like you and thus get along with you, it is more important that you have varied talent and skillsets to achieve the goals of a project or the team or the organisation. This is especially true in our rapidly changing industry and world. We need team members who are challenging the norms, looking ahead to develop creative solutions and exploring new possibilities for the company. I place a high value on a diverse range of skills and traits when it comes to hiring new talent. How has mentorship made a difference in your professional life? I have had a number of mentors throughout my career and a few have become good friends. Looking back, they have coached me to be a better manager, to lead projects and teams and to be more strategic in thinking. They have challenged me and given me the confidence to take on more responsibilities or even different roles. My mentors have helped me to develop a sense of perspective and balance in my professional life. They’ve encouraged me to focus on the things that truly matter, both in my work and in my personal life, and have helped me to develop a sense of purpose and direction that has been invaluable in my career. Best piece of advice you ever got on your career. My career took a very different trajectory when I followed the advice of my mentor to take up the challenge of a start-up role outside my home country. It broadened my horizon, has allowed me to pursue new opportunities and also challenged me personally and professionally. This career move reinforced the importance of building bridges and connections which is very important in our industry. By focusing on building strong relationships and fostering a culture of collaboration and partnership, I have been able to drive innovation, build trust, and create value for the companies which I have worked for. What are the top factors you would attribute to your success? • Vision and strategy This is essential for me to steer the organisation and to focus all of us on the direction we are heading and to make decisions that align with our vision. • Competitiveness Having a talented and motivated team is very important. It’s also important to build a culture where everyone has a stake in the company’s success and where they are supported and empowered to contribute their best. •. Authenticity I prioritise building authentic, long-term partnerships with employees, our clients and our partners through transparency, honesty, and reliability. This creates mutual trust and respect, leading to more successful collaborations and better outcomes for employees, partners, clients, and other stakeholders. • Shared responsibility, collaboration and accountability You can’t do everything alone, and having a talented and motivated team is essential for achieving your goals. For me, that means hiring people who are not only skilled and experienced, but who share our vision and values. It’s important to create a culture where everyone feels like they have a stake in the company’s success, and where they feel supported and empowered to contribute their best work. Finally, I believe that my success has been greatly influenced by the ability to collaborate effectively with others and to approach challenges with empathy and understanding.Source: https://www.thesundaily.my/business/success-the-insight-story-diverse-range-of-talent-skillsets-in-a-team-vital-HB11239295

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17 Jul 2023

FEATURE: DIVERSE RANGE OF TALENT, SKILLSETS IN A TEAM VITAL

SunBiz gets the views of GHL Systems group CEO Sean Hesh How has your life experience made you the leader you are today?The experiences I gained from living and working across different countries has taught me the importance of cultural sensitivity and adaptability that have been essential in building strong relationships and driving business growth. What traits do you look for in your talent or how do you decide who is right for a job? While it is always easier to hire people who think like you and thus get along with you, it is more important that you have varied talent and skillsets to achieve the goals of a project or the team or the organisation. This is especially true in our rapidly changing industry and world. We need team members who are challenging the norms, looking ahead to develop creative solutions and exploring new possibilities for the company. I place a high value on a diverse range of skills and traits when it comes to hiring new talent. How has mentorship made a difference in your professional life? I have had a number of mentors throughout my career and a few have become good friends. Looking back, they have coached me to be a better manager, to lead projects and teams and to be more strategic in thinking. They have challenged me and given me the confidence to take on more responsibilities or even different roles. My mentors have helped me to develop a sense of perspective and balance in my professional life. They’ve encouraged me to focus on the things that truly matter, both in my work and in my personal life, and have helped me to develop a sense of purpose and direction that has been invaluable in my career. Best piece of advice you ever got on your career. My career took a very different trajectory when I followed the advice of my mentor to take up the challenge of a start-up role outside my home country. It broadened my horizon, has allowed me to pursue new opportunities and also challenged me personally and professionally. This career move reinforced the importance of building bridges and connections which is very important in our industry. By focusing on building strong relationships and fostering a culture of collaboration and partnership, I have been able to drive innovation, build trust, and create value for the companies which I have worked for. What are the top factors you would attribute to your success? • Vision and strategy This is essential for me to steer the organisation and to focus all of us on the direction we are heading and to make decisions that align with our vision. • Competitiveness Having a talented and motivated team is very important. It’s also important to build a culture where everyone has a stake in the company’s success and where they are supported and empowered to contribute their best. •. Authenticity I prioritise building authentic, long-term partnerships with employees, our clients and our partners through transparency, honesty, and reliability. This creates mutual trust and respect, leading to more successful collaborations and better outcomes for employees, partners, clients, and other stakeholders. • Shared responsibility, collaboration and accountability You can’t do everything alone, and having a talented and motivated team is essential for achieving your goals. For me, that means hiring people who are not only skilled and experienced, but who share our vision and values. It’s important to create a culture where everyone feels like they have a stake in the company’s success, and where they feel supported and empowered to contribute their best work. Finally, I believe that my success has been greatly influenced by the ability to collaborate effectively with others and to approach challenges with empathy and understanding.Source: https://www.thesundaily.my/business/success-the-insight-story-diverse-range-of-talent-skillsets-in-a-team-vital-HB11239295

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10 Jul 2023

GHL SYSTEMS BERHAD SELECTS ARAB FINANCIAL SERVICES TO PROCESS ITS THAI MERCHANT TRANSACTIONS

Manama, Kingdom of Bahrain: GHL Systems Berhad (GHL), ASEAN’s leading payment solutions provider has selected Arab Financial Services (AFS), the Middle East and Africa region’s foremost digital payment solutions provider and fintech enabler, to process its merchant transactions in Thailand.The strategic collaboration will bring AFS’s payments technology expertise to support GHL’s merchant payments processing. AFS will provide GHL with Acquiring Platform as a Service and value-added services: authorisation and clearing for instore and eCommerce transactions, dispute management, fraud prevention and data analytics.Samer Soliman, Chief Executive Officer at AFS said, “We are thrilled to collaborate with GHL in a relationship that will combine the expertise of two strong organizations to help merchants expand and better serve the payments sector. Our entry into the Southeast Asian market is a significant milestone for AFS, and it is consistent with our commitment to digital payments transformation across markets. It’s exciting to work with GHL, who shares our goal of driving payments innovation, as we continue to focus on providing dependable and secure next generation payment processing solutions that bring greater value to our clients."Going forward, GHL’s merchants in Thailand will use the AFS acquirer payment processing platform, resulting in significantly increased efficiencies, robust security, and reliability along with state-of-the-art user experiences. As the preferred partner for banks, financial institutions, and merchants of all sizes across the region, AFS has a strong track record and proven expertise and experience in digital payments technology solutions and innovation.Sean Hesh, Executive Director & Group Chief Executive Officer at GHL Systems Berhad said, “We are delighted to join synergies with AFS, a company whose digital payments technology innovation, industry knowledge and expertise will serve to support and strengthen our payments ecosystem. By leveraging on AFS's expertise, we are confident in the delivery of next-level solutions that can elevate the experience for our valued merchants. We are excited about the transformative impact this collaboration will bring, both for our organisation and the satisfaction of merchants and consumers."Regulated by The Central Bank of Bahrain, and majority-owned by Bank ABC, AFS boasts numerous ground-breaking end-to-end digital payment services and solutions. These span debit, credit, and Islamic card processing, merchant acquiring, fintech, and a suite of state-of-the-art value-added services. Providing the highest quality payments solutions that are trusted by businesses, AFS has offices and data centers in Bahrain, Egypt, Oman, and the UAE. Its dedication to innovation has positioned AFS as a driving market force delivering a rich portfolio of payment solutions including popular digital mobile wallets, market-leading merchant acquiring services, Bahrain’s leading digital payroll solution, global contact centers and more.   

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10 Jul 2023

GHL SYSTEMS BERHAD SELECTS ARAB FINANCIAL SERVICES TO PROCESS ITS THAI MERCHANT TRANSACTIONS

Manama, Kingdom of Bahrain: GHL Systems Berhad (GHL), ASEAN’s leading payment solutions provider has selected Arab Financial Services (AFS), the Middle East and Africa region’s foremost digital payment solutions provider and fintech enabler, to process its merchant transactions in Thailand.The strategic collaboration will bring AFS’s payments technology expertise to support GHL’s merchant payments processing. AFS will provide GHL with Acquiring Platform as a Service and value-added services: authorisation and clearing for instore and eCommerce transactions, dispute management, fraud prevention and data analytics.Samer Soliman, Chief Executive Officer at AFS said, “We are thrilled to collaborate with GHL in a relationship that will combine the expertise of two strong organizations to help merchants expand and better serve the payments sector. Our entry into the Southeast Asian market is a significant milestone for AFS, and it is consistent with our commitment to digital payments transformation across markets. It’s exciting to work with GHL, who shares our goal of driving payments innovation, as we continue to focus on providing dependable and secure next generation payment processing solutions that bring greater value to our clients."Going forward, GHL’s merchants in Thailand will use the AFS acquirer payment processing platform, resulting in significantly increased efficiencies, robust security, and reliability along with state-of-the-art user experiences. As the preferred partner for banks, financial institutions, and merchants of all sizes across the region, AFS has a strong track record and proven expertise and experience in digital payments technology solutions and innovation.Sean Hesh, Executive Director & Group Chief Executive Officer at GHL Systems Berhad said, “We are delighted to join synergies with AFS, a company whose digital payments technology innovation, industry knowledge and expertise will serve to support and strengthen our payments ecosystem. By leveraging on AFS's expertise, we are confident in the delivery of next-level solutions that can elevate the experience for our valued merchants. We are excited about the transformative impact this collaboration will bring, both for our organisation and the satisfaction of merchants and consumers."Regulated by The Central Bank of Bahrain, and majority-owned by Bank ABC, AFS boasts numerous ground-breaking end-to-end digital payment services and solutions. These span debit, credit, and Islamic card processing, merchant acquiring, fintech, and a suite of state-of-the-art value-added services. Providing the highest quality payments solutions that are trusted by businesses, AFS has offices and data centers in Bahrain, Egypt, Oman, and the UAE. Its dedication to innovation has positioned AFS as a driving market force delivering a rich portfolio of payment solutions including popular digital mobile wallets, market-leading merchant acquiring services, Bahrain’s leading digital payroll solution, global contact centers and more.   

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6 Jul 2023

Beware of Loan Scams. Don't Be A Victim.

🚨 SCAM ALERT: We have become aware that someone is fraudulently using our company name to offer loans. Follow these tips to protect yourself:❗Do not respond to unsolicited loan offers. ❗Avoid loan offers that have upfront payments or fees. ❗Beware of high-pressure tactics to force quick decisions.   If you received any suspicious communications, please contact us immediately at hdesk@ghl.com or 03-6286 5222.  

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6 Jul 2023

Beware of Loan Scams. Don't Be A Victim.

🚨 SCAM ALERT: We have become aware that someone is fraudulently using our company name to offer loans. Follow these tips to protect yourself:❗Do not respond to unsolicited loan offers. ❗Avoid loan offers that have upfront payments or fees. ❗Beware of high-pressure tactics to force quick decisions.   If you received any suspicious communications, please contact us immediately at hdesk@ghl.com or 03-6286 5222.  

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20 Jun 2023

GHL EXPANDS ALIPAY+ INTEGRATION TO 2,600 THAI MERCHANTS CATERED FOR DIGITAL-FIRST TRAVELLERS IN ASIA

Key Highlights: GHL enables Alipay+ for 2,600 merchants in Thailand, local businesses can now accept cross-border digital payments from leading Asian mobile wallets. Thailand’s local businesses to benefit from this initiative come from a wide range of tourism industries, from retail, F&B to hospitality and attractions nationwide. Jim Thompson, Premium Outlets are amongst local brands to benefit from this partnership. Bangkok, THAILAND: GHL Systems Berhad (GHL), the leading payment service company in ASEAN region, has enabled Alipay+ for over 2,600 local businesses in Thailand to accept cross-border digital payments from leading Asian mobile wallets. This includes AlipayHK (Hong Kong SAR), Kakao Pay (South Korea), Touch ‘n Go eWallet (Malaysia) and Alipay (Chinese mainland), which has been accepted by Thai merchants since 2015.  Travellers visiting Thailand can now pay with their home e-wallets at over 5,000 retail outlets powered by GHL, through a partnership with Alipay+, a suite of global cross-border digital payment and marketing solutions operated by Ant Group. The local businesses to benefit from this initiative come from a wide range of tourism industries, from retail, F&B to hospitality and attractions nationwide.  For the first quarter of 2023, the government announced Thailand has achieved its target for tourist arrivals, with 6.15 million visitors . As travellers return to Thailand, they have greater expectations of their travel and retail experience, particularly as many have become accustomed to a seamless payment experience via mobile wallets. Mr. Prinya Jinantuya, Chief Executive Officer of GHL Thailand said, “GHL's long-term partnership with Alipay, now further enhanced with the latest collaboration with Alipay+ holds immense value for the Thai tourism industry. Local businesses can attract a broader customer base of Asian travellers, offering them a familiar and convenient payment method. This integration aligns with Thailand's vision to create a cashless economy, fostering financial inclusivity and driving economic growth. As digital transactions continue to rise, the economy benefits from enhanced transparency, efficiency, and security, positively impacting multiple sectors and promoting overall economic development.”Jim Thompson, Thailand’s well-known silk company and one of the earliest local brands to complete the integration, stands as a testament to the benefits of this partnership. With a legacy rooted in exquisite silk craftsmanship, today, Jim Thompson is the iconic global lifestyle brand from Thailand with a reputation for beautiful silks and "Beyond Silk" and a beloved brand among both locals and international visitors.Nunnapat Verojanavat, Marketing Director of Jim Thompson, said: “By embracing cross-border digital payments, Jim Thompson can now offer a familiar and convenient payment method to these travellers, enhancing their overall shopping experience. Tourists from China, Hong Kong, South Korea, and Malaysia, who are accustomed to using mobile wallets as their preferred payment method, can now enjoy a seamless and hassle-free shopping experience. This not only strengthens customer satisfaction but also contributes to building long-term customer loyalty.”Commenting on the partnership, Dr Cherry Huang, General Manager of Alipay+ Offline Merchant Services, Ant Group, said: “Today’s travellers are not the same as they were before the pandemic, with many now used to digital lifestyles, which they will expect no matter where they go. Through our local partners like GHL, we can enable more local businesses to easily accept digital payments like e-wallets, which is fast becoming the preferred payment method of Asian consumers, helping them provide a more convenient, fuss-free experience.”Travellers will have no lack of retail and entertainment options in Thailand and can use their own local mobile wallets at popular shopping destinations such as all six Premium Outlets, including in Cha-am, Khao-Yai, Pattaya, Ayutthaya, Phuket and Krabi.  [1] Reuters: Thailand beats Q1 tourism target with 6.15 million arrivals

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20 Jun 2023

GHL EXPANDS ALIPAY+ INTEGRATION TO 2,600 THAI MERCHANTS CATERED FOR DIGITAL-FIRST TRAVELLERS IN ASIA

Key Highlights: GHL enables Alipay+ for 2,600 merchants in Thailand, local businesses can now accept cross-border digital payments from leading Asian mobile wallets. Thailand’s local businesses to benefit from this initiative come from a wide range of tourism industries, from retail, F&B to hospitality and attractions nationwide. Jim Thompson, Premium Outlets are amongst local brands to benefit from this partnership. Bangkok, THAILAND: GHL Systems Berhad (GHL), the leading payment service company in ASEAN region, has enabled Alipay+ for over 2,600 local businesses in Thailand to accept cross-border digital payments from leading Asian mobile wallets. This includes AlipayHK (Hong Kong SAR), Kakao Pay (South Korea), Touch ‘n Go eWallet (Malaysia) and Alipay (Chinese mainland), which has been accepted by Thai merchants since 2015.  Travellers visiting Thailand can now pay with their home e-wallets at over 5,000 retail outlets powered by GHL, through a partnership with Alipay+, a suite of global cross-border digital payment and marketing solutions operated by Ant Group. The local businesses to benefit from this initiative come from a wide range of tourism industries, from retail, F&B to hospitality and attractions nationwide.  For the first quarter of 2023, the government announced Thailand has achieved its target for tourist arrivals, with 6.15 million visitors . As travellers return to Thailand, they have greater expectations of their travel and retail experience, particularly as many have become accustomed to a seamless payment experience via mobile wallets. Mr. Prinya Jinantuya, Chief Executive Officer of GHL Thailand said, “GHL's long-term partnership with Alipay, now further enhanced with the latest collaboration with Alipay+ holds immense value for the Thai tourism industry. Local businesses can attract a broader customer base of Asian travellers, offering them a familiar and convenient payment method. This integration aligns with Thailand's vision to create a cashless economy, fostering financial inclusivity and driving economic growth. As digital transactions continue to rise, the economy benefits from enhanced transparency, efficiency, and security, positively impacting multiple sectors and promoting overall economic development.”Jim Thompson, Thailand’s well-known silk company and one of the earliest local brands to complete the integration, stands as a testament to the benefits of this partnership. With a legacy rooted in exquisite silk craftsmanship, today, Jim Thompson is the iconic global lifestyle brand from Thailand with a reputation for beautiful silks and "Beyond Silk" and a beloved brand among both locals and international visitors.Nunnapat Verojanavat, Marketing Director of Jim Thompson, said: “By embracing cross-border digital payments, Jim Thompson can now offer a familiar and convenient payment method to these travellers, enhancing their overall shopping experience. Tourists from China, Hong Kong, South Korea, and Malaysia, who are accustomed to using mobile wallets as their preferred payment method, can now enjoy a seamless and hassle-free shopping experience. This not only strengthens customer satisfaction but also contributes to building long-term customer loyalty.”Commenting on the partnership, Dr Cherry Huang, General Manager of Alipay+ Offline Merchant Services, Ant Group, said: “Today’s travellers are not the same as they were before the pandemic, with many now used to digital lifestyles, which they will expect no matter where they go. Through our local partners like GHL, we can enable more local businesses to easily accept digital payments like e-wallets, which is fast becoming the preferred payment method of Asian consumers, helping them provide a more convenient, fuss-free experience.”Travellers will have no lack of retail and entertainment options in Thailand and can use their own local mobile wallets at popular shopping destinations such as all six Premium Outlets, including in Cha-am, Khao-Yai, Pattaya, Ayutthaya, Phuket and Krabi.  [1] Reuters: Thailand beats Q1 tourism target with 6.15 million arrivals

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25 Apr 2023

GHL AND DISCOVER® GLOBAL NETWORK PARTNER TO BROADEN CROSS-BORDER PAYMENT ACCEPTANCE

GHL and Discover® Global Network partner to broaden the acceptance of Discover®, Diners Club International®, and network alliance cardholders in Malaysia. With this latest enhancement, merchants can now accept Diners Club International and Discover cross-border card on GHL point-of-sale (POS) terminals, providing an additional payment acceptance option. In addition to Diners Club International and Discover, the wide variety of cross-border card schemes that GHL merchants can accept via Discover Global Network includes Rupay, Elo, Verve and more. This expanded payment acceptance offers greater flexibility and convenience to both merchants and customers alike. This development also allows tourists to pay for their purchases in Malaysia using their own country’s card schemes via GHL terminals through Discover Global Network. Customers from all around the world can now enjoy seamless and hassle-free payment options when making purchases with GHL merchants.

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25 Apr 2023

GHL AND DISCOVER® GLOBAL NETWORK PARTNER TO BROADEN CROSS-BORDER PAYMENT ACCEPTANCE

GHL and Discover® Global Network partner to broaden the acceptance of Discover®, Diners Club International®, and network alliance cardholders in Malaysia. With this latest enhancement, merchants can now accept Diners Club International and Discover cross-border card on GHL point-of-sale (POS) terminals, providing an additional payment acceptance option. In addition to Diners Club International and Discover, the wide variety of cross-border card schemes that GHL merchants can accept via Discover Global Network includes Rupay, Elo, Verve and more. This expanded payment acceptance offers greater flexibility and convenience to both merchants and customers alike. This development also allows tourists to pay for their purchases in Malaysia using their own country’s card schemes via GHL terminals through Discover Global Network. Customers from all around the world can now enjoy seamless and hassle-free payment options when making purchases with GHL merchants.

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18 Apr 2023

FEATURE: GHL DIVERSIFIES INTO MICRO LENDING, SUPPORTS BNPL

CONTACTLESS and digital payments have gained favour among consumers in recent years, a trend accelerated by the Covid-19 pandemic. Improvements in technology have enabled cashless transactions with smartphones, e-commerce, and internet access, as well as online banking, credit and debit cards, digital wallets and point-of-sales (POS) devices all playing a key role.This development bodes well for companies such as GHL Systems Bhd, a payment solutions provider that accepts almost all modes of digital payment through POS terminals.As at end-December 2022, the group had almost 420,000 payment touchpoints with a transaction value processed (TPV) of RM26.2 billion — up 13% year on year from RM23.2 billion.While riding high on cashless transactions, GHL is starting a new growth engine — offering micro loans to its merchants — as well as online payment transactions as it faces margin compression due to the stiff competitive landscape.GHL CEO Sean Hesh says the group has so far disbursed a total of RM10 million to more than 200 of its merchants at an average loan size of RM50,000 with a one-year tenure.“It has been very encouraging, I would say … This is one of our growth engines. We are offering microfinancing to our existing merchants that have at least two to three years’ history with us.“Moneylending is actually complementary to our existing core business.,” says Hesh,  noting that the money lending is a deviation from its core payment business.“What differentiates our products [micro credit] from the other providers is that we already know our merchants’ track record [and] that speeds up the turnaround time to about three days,” Hesh tells The Edge.GHL has over the years recruited a large merchant base and that offer it a platform for its money lending venture.  “Our target is the  Tier 3 and 4 merchants who we know of their daily (sale) transactions and business volume,” he explains.Having said that, he is targeting RM100 million in micro loan disbursement, more than 10 times the current amount, in three of its operating countries in Asean — Malaysia, Thailand and the Philippines — over the next two years.GHL’s microfinancing rate averages 15%, as Malaysia’s interest rate on finance charges on cash advances is capped at 18% per year. Other markets have higher limits — Thailand’s, for example, can go as high as 36%, while the Philippines’ is almost 72%.At present, GHL finances its microfinancing through internally generated funds, as it is a net cash company with RM126 million in its coffers as at Dec 31, 2022.Hesh says GHL is open to taking on a banking partner for its microfinancing business if the portfolio continues to grow. “It [moneylending] will absolutely change our capital requirements. If the business grows the way we envision it, we will definitely need to look for a partner, or we could also raise capital.”Going into microfinancing has been an area that GHL has been eyeing for years to address its razor-thin net profit margins from its core business of cashless payment solutions (see chart).For the financial year ended Dec 31, 2022 (FY2022), GHL posted RM28.15 million in net profit, marginally lower than in FY2021, despite higher revenue of RM410.60 million from RM360.17 million previously.Back-of-the-envelope calculations indicate that GHL saw a lower profit margin of 6.9% in FY2022, compared with 7.8% a year earlier.This shows that the cashless payment business is a volume game.Hesh is optimistic that GHL’s net profit margin will exceed 10% this year, supported by its new ventures, but he observes that the segment is only secondary. “Our bread-and-butter business, which is payments, will continue to be our main revenue base. I think at the end of the three years, our lending business will still be only less than 10% of my total revenue base.”Nonetheless, money lending is expected to offer much wider margins, but with higher risk.Hesh, who has more than 35 years’ experience in the payment business in the US and Asia, joined GHL in November 2020, at the height of the Covid-19 pandemic. “I started my career in real estate investment before joining the banking sector. I was one of the early groups that started to sell the POS terminal to merchants to earn extra income,” he says, half in jest.Tapping online transactionsAlthough GHL was one of the earliest players in cashless payment solutions in Malaysia, the group has always faced margin compression due to regulatory constraints that cap the fee at 1% to 1.5% per transaction, among the lowest in the region. But, the situation has been further exacerbated by a drastic transformation over the last years, led by e-wallet payments and static QR code payments that charge lower fees, which could pose a threat to companies such as GHL .Even so, Hesh is unperturbed, as he believes the cashless payment market remains big and relatively untapped. “In Malaysia alone, retail trade is about RM661 billion and 70% of the payments are all cash-based.“I don’t worry about my competition because the pie is so big for all of us to be successful as governments continue to push digitalisation, and the industry continues to innovate,” he says.He projects that GHL’s overall payment transactions will see double-digit growth this year on the back of merchant acquisition and higher online transactions through its proprietary payment interface, called eGHL.Currently, GHL has more than 3,500 online merchants across Malaysia for its eGHL payment gateway and they account for about 20% of its total volume.To adapt to the changes in the cashless payment environment, GHL continues to expand its partnerships with other payment players, including its support of buy-now-pay-later (BNPL) solutions providers, such as Grab and Atome. This allows it to expand its payment offerings across the region.GHL has also partnered with global technology company Visa to introduce the Visa instalment solution for its eGHL payment gateway and in-store purchases.Hesh sees growth potential of BNPL in the business-to-business (B2B). BNPL is a new term for payment by invoice — when items are purchased and payment is received at a later date.“Let’s say I order 30 cases of paper from you, so how do I pay you? Typically, you send me an invoice, right? That invoice is between 30 and 90 days payable. Why can’t that transaction be in a digital manner?“If you ask Visa and Mastercard today, they will tell you that they are foucsed on  that opportunity. And that’s an area that we are starting to look at now for potential growth for our future,” he says.Regional expansionGiven its various partnerships with other payment solutions providers globally and in the region, Hesh expects the Philippines and Thailand to be the next most important market for GHL, owing to their growing affluent population. The group also holds moneylending licences in both countries.“The Philippines is the next most important market for us, as more consumers are adapting to digital payments, [as are] a great number of [small and medium enterprises], and [then] there is a government push for digitisation,” he says.Indonesia is proving more challenging and GHL is still looking for ways to expand there.“It’s a very difficult market for us to scale up [Indonesia] and we have a small team. We are trying to figure out the best way to grow in Indonesia. Is it an organic opportunity or is it inorganic?,” Hesh says.GHL’s share price has been on a decline over the last 12 months. Last Friday, its stock was trading at 82 sen, almost half the price of RM1.55 a year ago, giving its market capitalisation of RM941.7 million.Analysts are generally bullish on the counter; five research houses recommend a “buy” and two are calling a “hold”, with an average target price of RM1.05, according to Bloomberg data. This article first appeared in The Edge Malaysia Weekly on April 10, 2023 - April 16, 2023 Source: https://theedgemalaysia.com/node/662790

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18 Apr 2023

FEATURE: GHL DIVERSIFIES INTO MICRO LENDING, SUPPORTS BNPL

CONTACTLESS and digital payments have gained favour among consumers in recent years, a trend accelerated by the Covid-19 pandemic. Improvements in technology have enabled cashless transactions with smartphones, e-commerce, and internet access, as well as online banking, credit and debit cards, digital wallets and point-of-sales (POS) devices all playing a key role.This development bodes well for companies such as GHL Systems Bhd, a payment solutions provider that accepts almost all modes of digital payment through POS terminals.As at end-December 2022, the group had almost 420,000 payment touchpoints with a transaction value processed (TPV) of RM26.2 billion — up 13% year on year from RM23.2 billion.While riding high on cashless transactions, GHL is starting a new growth engine — offering micro loans to its merchants — as well as online payment transactions as it faces margin compression due to the stiff competitive landscape.GHL CEO Sean Hesh says the group has so far disbursed a total of RM10 million to more than 200 of its merchants at an average loan size of RM50,000 with a one-year tenure.“It has been very encouraging, I would say … This is one of our growth engines. We are offering microfinancing to our existing merchants that have at least two to three years’ history with us.“Moneylending is actually complementary to our existing core business.,” says Hesh,  noting that the money lending is a deviation from its core payment business.“What differentiates our products [micro credit] from the other providers is that we already know our merchants’ track record [and] that speeds up the turnaround time to about three days,” Hesh tells The Edge.GHL has over the years recruited a large merchant base and that offer it a platform for its money lending venture.  “Our target is the  Tier 3 and 4 merchants who we know of their daily (sale) transactions and business volume,” he explains.Having said that, he is targeting RM100 million in micro loan disbursement, more than 10 times the current amount, in three of its operating countries in Asean — Malaysia, Thailand and the Philippines — over the next two years.GHL’s microfinancing rate averages 15%, as Malaysia’s interest rate on finance charges on cash advances is capped at 18% per year. Other markets have higher limits — Thailand’s, for example, can go as high as 36%, while the Philippines’ is almost 72%.At present, GHL finances its microfinancing through internally generated funds, as it is a net cash company with RM126 million in its coffers as at Dec 31, 2022.Hesh says GHL is open to taking on a banking partner for its microfinancing business if the portfolio continues to grow. “It [moneylending] will absolutely change our capital requirements. If the business grows the way we envision it, we will definitely need to look for a partner, or we could also raise capital.”Going into microfinancing has been an area that GHL has been eyeing for years to address its razor-thin net profit margins from its core business of cashless payment solutions (see chart).For the financial year ended Dec 31, 2022 (FY2022), GHL posted RM28.15 million in net profit, marginally lower than in FY2021, despite higher revenue of RM410.60 million from RM360.17 million previously.Back-of-the-envelope calculations indicate that GHL saw a lower profit margin of 6.9% in FY2022, compared with 7.8% a year earlier.This shows that the cashless payment business is a volume game.Hesh is optimistic that GHL’s net profit margin will exceed 10% this year, supported by its new ventures, but he observes that the segment is only secondary. “Our bread-and-butter business, which is payments, will continue to be our main revenue base. I think at the end of the three years, our lending business will still be only less than 10% of my total revenue base.”Nonetheless, money lending is expected to offer much wider margins, but with higher risk.Hesh, who has more than 35 years’ experience in the payment business in the US and Asia, joined GHL in November 2020, at the height of the Covid-19 pandemic. “I started my career in real estate investment before joining the banking sector. I was one of the early groups that started to sell the POS terminal to merchants to earn extra income,” he says, half in jest.Tapping online transactionsAlthough GHL was one of the earliest players in cashless payment solutions in Malaysia, the group has always faced margin compression due to regulatory constraints that cap the fee at 1% to 1.5% per transaction, among the lowest in the region. But, the situation has been further exacerbated by a drastic transformation over the last years, led by e-wallet payments and static QR code payments that charge lower fees, which could pose a threat to companies such as GHL .Even so, Hesh is unperturbed, as he believes the cashless payment market remains big and relatively untapped. “In Malaysia alone, retail trade is about RM661 billion and 70% of the payments are all cash-based.“I don’t worry about my competition because the pie is so big for all of us to be successful as governments continue to push digitalisation, and the industry continues to innovate,” he says.He projects that GHL’s overall payment transactions will see double-digit growth this year on the back of merchant acquisition and higher online transactions through its proprietary payment interface, called eGHL.Currently, GHL has more than 3,500 online merchants across Malaysia for its eGHL payment gateway and they account for about 20% of its total volume.To adapt to the changes in the cashless payment environment, GHL continues to expand its partnerships with other payment players, including its support of buy-now-pay-later (BNPL) solutions providers, such as Grab and Atome. This allows it to expand its payment offerings across the region.GHL has also partnered with global technology company Visa to introduce the Visa instalment solution for its eGHL payment gateway and in-store purchases.Hesh sees growth potential of BNPL in the business-to-business (B2B). BNPL is a new term for payment by invoice — when items are purchased and payment is received at a later date.“Let’s say I order 30 cases of paper from you, so how do I pay you? Typically, you send me an invoice, right? That invoice is between 30 and 90 days payable. Why can’t that transaction be in a digital manner?“If you ask Visa and Mastercard today, they will tell you that they are foucsed on  that opportunity. And that’s an area that we are starting to look at now for potential growth for our future,” he says.Regional expansionGiven its various partnerships with other payment solutions providers globally and in the region, Hesh expects the Philippines and Thailand to be the next most important market for GHL, owing to their growing affluent population. The group also holds moneylending licences in both countries.“The Philippines is the next most important market for us, as more consumers are adapting to digital payments, [as are] a great number of [small and medium enterprises], and [then] there is a government push for digitisation,” he says.Indonesia is proving more challenging and GHL is still looking for ways to expand there.“It’s a very difficult market for us to scale up [Indonesia] and we have a small team. We are trying to figure out the best way to grow in Indonesia. Is it an organic opportunity or is it inorganic?,” Hesh says.GHL’s share price has been on a decline over the last 12 months. Last Friday, its stock was trading at 82 sen, almost half the price of RM1.55 a year ago, giving its market capitalisation of RM941.7 million.Analysts are generally bullish on the counter; five research houses recommend a “buy” and two are calling a “hold”, with an average target price of RM1.05, according to Bloomberg data. This article first appeared in The Edge Malaysia Weekly on April 10, 2023 - April 16, 2023 Source: https://theedgemalaysia.com/node/662790

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