EON Bank launches business-to-business payment card
Daily Express, 16 November, 2006
Kuala Lumpur : EON Bank Group Wednesday launched a new mobile distribution card payment service for business-to-business (B2B) transactions. The EON Bank Visa B2B Distribution Card will facilitate payment between a dealer or retailer and its wholesaler or distributor using the Secured Transaction & Electronic Payment System (STEPS).
STEPS was developed by Rhythm Technologies Sdn Bhd to replace cheques and cash transactions with the distribution card.
EON Bank said with STEPS, companies could conduct sales transactions and make payments onsite, anytime with guaranteed on time settlement from the bank. Chief executive officer Albert Lau Yiong said the bank is expected to issue at least 3,500 distribution cards to its three pioneer distribution card merchants.
"These three merchants have a total combined business of RM2.2 billion and we expect 50 percent of it to convert to B2B payments within a year," he said.
"In the Malaysian banking industry, commercial payment services are still relatively new but the market potential is enormous," he added.
The three merchants using the new service are Diethelm Malaysia Sdn Bhd, Zitron Enterprise ( Malaysia) Sdn Bhd and Kai Shen Marketing Sdn Bhd.
EON Bank's vice president and head of credit card centre, Aaron Tan, told reporters that another six merchants are expected to sign up in the coming months. Visa International's country manager for Malaysia, Jeffrey Perera, said the distribution card model has worked well in various other countries, including South Korea, Taiwan and in Latin America.
"We are confident that with the driving forces of EON Bank and STEPS, businesses in Malaysia will be quick to embrace this new programme," he said.
- Bernama
[16 Nov 06 at 06 07:43 PM]
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