KUALA LUMPUR: ManagePay Systems Bhd (MPay) shares surged as much as 14% yesterday after the electronic payment solution provider announced that it plans to launch its moneylending business in April this year. Last Friday, it received approval from the urban well-being, housing and local government ministry’s moneylender and pawnbroker division to operate the business.

The stock rose to an intraday high of 24 sen before paring gains and closing 2.5 sen or 11.9% higher at 23.5 sen, with 7.8 million shares done. Its market capitalisation stood at RM163.41 million.

In a filing with Bursa Malaysia yesterday, MPay said its wholly-owned subsidiary ManagePay Services Sdn Bhd received a letter of approval (LoA) from the ministry last Friday on the application for a moneylending licence pursuant to the Moneylenders Act 1951 [Act 400].

“With the receipt of [the] LoA and after six months [of] preparing to fulfil the requirements specified in the conditional approval letter issued by the ministry, MPay Group is now able to start the moneylending business targeting at individuals and businesses, over and above its Quickash Peer-to-Peer financing platform,” it added.

MPay said these new additional lending capabilities will contribute to the group’s revenue and bottom line in 2018.