Kiwi payments software company GFG Group has formed a Canadian subsidiary — GFG Group Payment Solutions — and set up an office in Toronto to service the North American market.
Chief executive Grant Halverson says the move is in response to a growing level of new business inquiries in Canada, following the selection of GFG’s Simfonie mobile payments software by Canada’s Wireless Payments Services last year.
He says mature markets, such as Canada’s, are behind emerging economies in mobile payments, as the established payments infrastructure of developed economies is slower to adopt new technologies.
“The signals we’re getting from the Canadian market, in terms of new business inquiries, indicate that Canada is ready to move to mobile payments. We’re keen to be in on the ground floor, and have resources on the ground as the market develops.”
GFG now has more than 20% of the global market for sophisticated payments (excluding top-up) made using a mobile phone, he says. Of a total global market of 2.7 billion consumers using mobile phones, around 800 million are estimated to be using some payments function, yielding around $US920 million in telco revenues from mobile payments. Around 90 million mobile consumers are using sophisticated payment functions, a number that is expected to quadruple within the next three years.
GFG is also having success in the North American market with its banking products, Halverson says, having just completed card issuing at West Suburban Bank in Chicago and implementation of the Interac standard into its FINsim testing software for a Canadian bank. The company’s core research and development team is based in Auckland.