RealTime IT News

Hutchison, Vanda Team Up for Payment Gateway

Hutchison Whampoa Ltd and Vanda Systems and Communications Holdings Ltd agreed this week to establish a joint venture to develop a Web-based B2B payment gateway.

HK-based Hutchison Whampoa Ltd is a conglomerate owned by tycoon Li Ka-shing, while Vanda is a local IT solution provider.

According to company officials, this 50-50 joint venture will develop a Web-based B2B payment gateway to automate the settlement of e-commerce transactions. The system will link up all the parties of a trading business model including: the supplier, the buyer and the bank.

The name of the new joint venture company has not been determined.

Vanda said as every e-commerce project requires a payment gateway, it expects the new company will be involved in Hutchison future projects. Projects may include iBusinessCorporation.com, a company official said.

iBusinessCorporation.com is a new Internet joint venture between the Honking and Shanghai Banking Corp. Ltd., Hang Seng Bank, Cheung Kong (Holdings) Ltd., and Hutchison Whampoa Ltd.

According to Hutchison, iBusinessCorporation.com plans to launch Internet businesses and portals in the coming months.

Under the agreement between Vanda and Hutchison, Vanda will issue a 2-year convertible bond to both Hutchison and an independent third party.

The Hutchison bond is valued at HK$198 million (US$25 million) while the third party bond is valued at HK$79 million (US$10 million).