OnCard getting altitude in ticketing

OnCard, the Peter Scanlon-backed payments venture that is tackling China and south-east Asia, has established a payments gateway in Kunming in Southern China.

The project to build the gateway has been under way for two years and is now in final testing, says OnCard executive chairman Peter Abotomey. The gateway uses the China National Automated Payments System (CNAPS).

"We are doing test transactions now. The gateway will cater for large billing corporates like insurance companies."

OnCard has also rebranded its 2009 Chinese acquisition, Bill-to-Bill, an online consumer and merchant payments system, as OnCard Payments China. Abotomey says that venture is dominating online airline ticket sales in China.

The company also increased its stake in Beijing All Payments Company to a controlling interest of more than 80 per cent and established a new regional
headquarters in Shanghai.

These and other projects, as well as the recruitment of eight MBAs in China, led to increased costs and a loss for the half year ending 31 December of $215,000 (down from a profit of $3.2 million in the corresponding period in 2008).

Revenues were also very flat for OnCard in its South East Asian markets.

"We held our own in Singapore, Hong Kong and Malaysia," said Abotomey, "The GFC hit very hard in those markets and we really had to batten down the hatches. I expect revenue from our activities to increase in those markets in the next year.

"I expect our second half result won't be fantastic, but next year's will be. We are a growth company."