ManagePay to start money lending biz in April

PETALING JAYA: ManagePay Systems Bhd (MPay) is targeting to launch its money lending business in April after receiving approval from the government.

The group told Bursa Malaysia that its wholly owned subsidiary ManagePay Resources Sdn Bhd (MRSB) had on January 19 received a letter of approval (LOA) dated January 17 from the Moneylenders and Pawnbrokers Division of the Ministry of Urban Wellbeing, Housing And Local Government (MHLG).

"The LOA confirmed that MRSB had fulfilled the conditions as specified in the earlier letter of approval dated May 12, 2017 to ManagePay Services Sdn Bhd (MPSB) and vide the LOA granted the approval to MRSB to operate money lending business."

MPSB had vide its letter dated September 12, 2017 to apply for the transfer of its money lending licence granted by MHLG to MRSB and the MHLG had vide its LOA approved the application.

MPay said with the receipt of LOA and after six months of preparation for fulfilling the requirements as specified in the conditional approval letter issued by MHLG, the group is now able to start the money lending business targeting both individuals and businesses, over and above MPay's Quickash Peer-to-Peer (P2P) financing platform, which was launched in September 2017.

"With these new added lending capabilities, which MPay targets to launch in April 2018, it will contribute to both revenue and bottom line of the company in year 2018."

At the noon break, MPay's share price rose 2.4% to 21.5 sen on some 1.3 million shares done.