Hong Kong lottery hardware firm AGTech has purchased fintech Macau Pass as part of the region’s development strategy.
Having been granted a financial licence in 2006, Macau Pass has since elevated the local electronic payments space, becoming one of the first companies to introduce contactless payments through the MP Card – a solution that has grown from only covering public transport transactions to offering payment capabilities for government services, retail expenses, and food and beverage purchases.
Sun Ho, Chairman and CEO of AGTech, commented: “As a local business, Macau Pass’s years-long investment in the community and economy of Macau has borne fruitful results, and is fully recognized and highly appreciated by AGTech.”
All subsidiaries of Macau Pass are now a property of AGTech, in terms making it an indirect subsidiary of the lottery firm.
With Macau’s mobile payments space increasing year-on-year with 194%, and total value of transactions up by 192% in 2021 compared to the previous year, AGTech remains confident that the acquisition is an “important milestone” necessary to support its other businesses, including lotteries, by establishing a presence in the local fintech sector.
“Over the years, Macau Pass has been actively involved in the local fintech industry, expanding its e-payment applications to different levels of Macau people’s daily lives,” Ho continued.
“While enabling a stable transition of Macau Pass, we will cooperate with the local government to turn Macau into a smart city of the 21st century. It lays a solid foundation for the group’s future strategic expansion into the payment business and financial services ecosystem.”
The move is believed to contribute to the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area”, which was issued back in 2019 by the Chinese authorities to expedite economic and social developments in the Pearl River Delta region – a major manufacturer hub of significant importance to China that consists of multiple densely-populated urban areas, including the Special Administrative Regions Hong Kong and Macau.
Ho concluded: “Under the policy of (the plan), we believe that Macau Pass will become the leader of local fintech innovation to propel the appropriate diversification of Macau’s economy and the growth of local fintech industry.
“At the same time, it can also deepen the interconnection of mobile financial infrastructure of Macau, Greater Bay Area, Guangdong-Macao In-Depth Cooperation Zone and Mainland China.”
