Oxpay SG’s partner terminates agreement over alleged breach of clause; merchant transactions affected

LICENSED payments provider Oxpay Financial announced on Tuesday (May 30) that Worldpay, a payments processing company, has sought to terminate a payment facilitation agreement with its unit Oxpay SG.

Worldpay claims that Oxpay SG had breached a clause in the agreement that requires Oxpay SG and its merchants not to do anything which Worldpay believes to be disreputable, or which is capable of damaging its reputation or goodwill. The clause also includes a provision for Worldpay to terminate the agreement if there is an occurrence that materially adversely affects Oxpay SG’s ability to meet its current, future or potential liabilities under the agreement.

Since the agreement was terminated with immediate effect, Oxpay SG was notified that the settlement of transactions through the company has been deferred. The company said it would work with merchants to provide an orderly exit.

Oxpay SG plans to appeal against Worldpay’s decision, adding that it was communicating with the company to understand its concerns.

“The termination of the agreement is expected to have a material impact on the financial performance and position of the group for the current financial year ending Dec 31, 2023, although the impact will be on the group’s Singapore market only,” said Oxpay.

The company added that it will provide updates if there are any material developments on this matter.

SEE ALSO

MC Payment to change its name to OxPay Financial

OxPay’s managing director to leave earlier following appointment of replacement

Oxpay Financial closed flat at S$0.075 on Monday.