Trunkbow International Holdings Limited (Beijing, P.R.C.), a provider of mobile payment services, on Thursday announced that it has signed a formal strategic partnership agreement with Tianyi e-Commerce Limited, a wholly owned subsidiary of China Telecom (Beijing, P.R.C.), for the development and marketing of China Telecom's Bestpay m-commerce payment application. Under the agreement, Trunkbow is to provide application development and support services for the mobile application, which was rolled-out to China Telecom's 3G subscribers across mainland China in August.
Trunkbow receives revenue from the Bestpay application on a per-transaction basis, according to government-stipulated terms, and range from 2-4% of the gross value of the end-user's total transaction. In addition, Trunkbow will receive individual commission payments from specific merchants for sales generated through the Bestpay application, according to the company.
Since the launch of the application, Trunkbow has signed an agreement with a group of online retailers, allowing for the purchase of movie tickets at over 270 theaters nationwide via users' mobile phones, according to the company. Trunkbow is also negotiating the terms of potential cooperation agreements with several nationwide quick-service restaurant chains and utility providers, which will allow users to pre-order fast food meals or pay utility bills.
The nationwide launch of the Bestpay mobile application allows China Telecom's 3G subscribers to complete online transactions, including the payment of telephone and other bills, purchase of lottery, movie and event tickets and online gaming "point cards," as well as checking transaction records and account balances using Trunkbow's, phone-based application. The application is pre-installed on China Telecom's Android-based Tianyi 3G handsets, while users of other devices can download the app either over the air or through China Telecom's website, says Trunkbow.
Trunkbow and Tianyi will collaborate on the development and expansion of the Bestpay merchant network, as well as marketing of the Bestpay application and service platform to China Telecom's 3G mobile subscribers, says Trunkbow. In addition, Trunkbow will work with merchants on the development of m-commerce payment applets, which will be designed to process specific types of transactions or transactions for specific online and physical merchants. Under a separate technology partnership, the Companies have collaborated on the development, beta testing, launch and ongoing support of the core Bestpay application, says Trunkbow.