SmartTrans secures new agreement providing mobile billing with China Mobile in Guangdong Province – immediate revenue results
• Agreement allows smartphone App and content providers to transact with China Mobile customers
• SmartTrans provides the billing platform and receives fees from each transaction
• Roll-out has already occurred in Guangdong Province – population of 106 million people¹
• SmartTrans’ new billing with China Mobile expected to expand – negotiating roll out in major provinces
• Two new App providers have already implemented the billing platform in the first week
• Already generating revenue – 21,000 billing transactions have occurred in first week in Guangdong
• Provides a growing source of passive revenue and a valuable and expanding customer database
• Chinese consumers can make purchases through smartphones up to CNY50 (~AUD$10) per transaction
• Significant scope for growth by accessing more of China Mobile’s 800 million subscribers2 10 March 2015:
Mobile and online payments platform and logistics software provider SmartTrans Holdings Limited (ASX: SMA) (‘SmartTrans’ or ‘the Company’) is pleased to announce that it has secured a new agreement providing integrated Direct Carrier billing with China Mobile for App and content providers who wish to sell their products and services to segments of the telco’s 800 million subscribers2 . Under the terms of the agreement, SmartTrans acts as the billing provider and receives a royalty fee for the purchase of Apps or content promoted to China Mobile subscribers, which can be any amount up to CNY50 (~AUD$10) per transaction.
SmartTrans is pleased to confirm that the billing platform has launched and has already been implemented by two smartphone App and content developers with approximately 21,000 new billing transactions completed in the first week.
The Company expects this number to grow rapidly as more App and content providers seek to sell their content through these agreements to customers of China Mobile. The two App and content developers who have integrated the SmartTrans billing platform are successfully promoting and selling their products to China Mobile consumers and delivering a new revenue stream to SmartTrans.
Their Apps are illustrated overleaf. Initially, the new billing module has been rolled out in the Guangdong province in China, which has a population of over 106 million1 .
SmartTrans is currently negotiating to expand this offering into a number of other major provinces with China Mobile. SmartTrans’ appointment as the technology partner to manage this new billing system with access directly into China Mobile’s back-end billing systems is a further endorsement of the Company’s positioning within the Chinese market, and a direct reflection of the trust and credibility that SMA has established with this telco, the largest in the country³. The billing system currently provides the ability to bill China Mobile customers directly to their mobile phone account via SMS or In-App billing and will shortly be expanded to include Wireless Application Protocol (WAP) billing.
This wide-reaching billing functionality is expected to appeal to large segments of the market, especially the growing number of consumers now using smartphones. SmartTrans’ Managing Director Mr Bryan Carr commented: “This is a game-changing agreement for SmartTrans as our SmartPay platform is being implemented and endorsed by China’s largest and most respected telecommunications provider.” “In simple terms, smartphone App developers and content providers who want to market their products and services to China Mobile’s customers can do so using SmartTrans’ SmartPay platform to transact.
This will provide us with a growing source of passive revenue and an ever-expanding customer database, which is a valuable asset in its own right. ”Melbourne Sydney Beijing Level 1 Suite 37 101, Building 22, 10 Queens Road 401 Pacific Highway Courtyard 4 Gongti Bei Lu MELBOURNE ARTARMON Chaoyang District VIC 3004 NSW 2064 BEIJING CBD, 100027 Ph: (03) 9866 7333 Ph: (02) 9660 4564 Ph: +86 (10) 6500 0910 “Two content providers have signed up in the first week and we expect this number to grow.
Having successfully launched in Guangdong, we are currently negotiating to roll out into a number of additional major provinces with China Mobile.
The early revenue signs are very encouraging, with approximately 21,000 billing transactions generated in one week with the first two App developers.” “We expect that this number will grow significantly as more App developers and content providers use this channel to promote to some of the 800 million subscribers that China Mobile have.
The scale of the Chinese consumer market is very compelling and we believe that this new agreement will be a strong revenue driver for SmartTrans.”
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