KUALA LUMPUR (April 19): NetX Holdings Bhd’s subsidiary PayAllZ Sdn Bhd has entered into a technology partnership agreement with M3 Technologies (Asia) Bhd’s unit M3 Online Sdn Bhd (M3O) for the development of an electronic payment mobile exchange (EPEX).

In a filing with the bourse, the company said the exchange will enable every XOX Bhd mobile subscriber to become an e-commerce merchant and have interconnection ability with both local and international payment gateways.

Under the agreement, Payallz will provide the integration of multiple payment gateways, while M3O will develop the front-end interface of the mobile application and e-commerce platform.

“This will allow for XOX’s mobile subscribers to have their own digital market place and multiple payment options to perform e-commerce transactions whether on conventional websites or using their mobile wallet,” said NetX.

The agreement — which is for an initial period of one year — entails a revenue sharing structure by a ratio of 40:30:30 between XOX, Payallz and M3O respectively.

“The partnership agreement will not have material effect on the issued and paid-up capital of the company and the earnings and net assets of the company for the financial year ending June 30, 2017, but it is expected to contribute positively in the next financial year ending June 30, 2018 onwards,” said the company.

NetX’s share price fell 0.5 sen or 12.5% to close at 3.5 sen, giving it a market capitalisation of RM21.89 million.