Shares of electric vehicle company MobilityOne (LON: MBO) are surging on Friday after the company said its subsidiary in Malaysia, MobilityOne Sdn Bhd, has received a license from MasterCard Asia/Pacific to issue MasterCard prepaid cards in Malaysia.
Additionally, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) has permitted MobilityOne Malaysia to join its network.
The company said the target market for the MasterCard prepaid cards in Malaysia will be foreign workers in the country, the unbanked, or those who cannot obtain credit cards due to their financial standing.
Workers can also use it to deposit their salary into the card, eliminating cash payments to workers who do not have bank accounts.
The card will complement Mobilityne's existing prepaid wallet and part of the company's end-to-end payment ecosystem.
Regarding SWIFT, the group is expected to be able to expand its business to a more significant amount of money transfers for business to business due to SWIFT's global financial network, which connects financial institutions and large corporations.
Revenue will be generated from transaction fees and foreign exchange markup for each transaction.
MobilityOne did state that they do not expect any significant revenue or earnings contributions from today's announcements in the current financial year as transactions with MasterCard and SWIFT are not likely to begin until Q4.
MobilityOne's share price surged on the news and is currently priced at 38.7p, up 43%.
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.