BPS Technology Limited (“BPS”) (ASX: BPS) is pleased to announce that it has today executed a Master Merchant Agreement with SmartTrans (ASX: SMA) to promote and sell products in China via Alibaba’s e-Commerce platform 1688.com.
BPS is committed to enhancing the services and distribution channels it provides to its 24,000 merchants and 50,000 cardholders and is pleased to now have opened up access for its proprietary technology and merchant networks to the huge e-commerce sector in China, estimated to be worth US$670 billion in 2015 and growing rapidly¹.
BPS is now able to provide the ability for its merchants to market and sell their products in China and receive payment in Australia via its agreement with established online payments business, SmartTrans, who is providing a specialist Australian products outlet on Alibaba’s online site www.1688.com and able to process payments to Australia via its cross-border payment capability.
Initially BPS will deliver key suppliers access in four key market verticals; Health and Wellness, Travel and Tourism, Property and Education. These are Australia’s largest export markets after the resources sector. The Master Merchant Agreement with SmartTrans enables BPS to earn a merchant fee and product margin from each transaction. At this stage all transactions are settled in cash, credit card or by AliPay.
This landmark agreement follows the announcement during Australia Week by the Prime Minster, Malcolm Turnbull, that the Australian Government is committed to providing market access for Australian businesses whilst confirming that the Chinese Government is committed to protecting Chinese consumers. To fulfil this under the new China Free Trade Agreement (CHaFTA), leading e-commerce facilitators have committed to ensuring that Australia suppliers are protected from counterfeit goods, predatory pricing and other anti-competitive behaviour. In turn Chinese consumers are protected and all appropriate taxes paid to the Chinese Government. (https://www.pm.gov.au/media/2016-04-14/keynote-address-australia-week-china-gala-lunch). These operators include Alibaba, 1688.com, JD.com, Taobao.com and Tmall.com
Alibaba.com, the primary company of Alibaba, is the world's largest online business-to-business trading platform for small businesses. The company's English language portal Alibaba.com handles sales between importers and exporters from more than 240 countries and regions. The Chinese portal 1688.com was developed for domestic business-to-business trade in China. In 2013, 1688.com launched a direct channel that is responsible for $30 million in daily transaction value.
SmartTrans Managing Director Bryan Carr stated: “The agreement with BPS Technology is a significant business-to-business (B2B) partnership in which SmartTrans will provide access to the BPS Merchants from outside of China to SmartTrans’ and Alibaba’s 1688.com online platforms, customer database and the SmartPay platform as a turnkey solution to doing business there. We look forward to working with our new partner BPS Technology to help bring Australian merchants’ products and service offerings to the huge China e-commerce market.”
BPS Chief Executive Officer Trevor Dietz stated: “Over time BPS will seek to expand its presence in the Chinese Market with its Chinese partners and plans to progressively roll out its payment and rewards technology platforms including TESS and Bucqi.”
1. Source: www.techinasia.com/china-ecommerce-spending-to-blast-past-1-trillion-in-2017
Media outlet: Market Eye
Title: BPS executes landmark agreement with Alibaba partner to open up Chinese Market for its Merchants
Date: 18th May 2016