The agreement between SmartTrans (ASX:SMA) and CITS was signed at an event in Beijing over the weekend which showcased the new Free Trade Agreement (FTA) between Australia and China. The agreement was cited by Australia’s Minister for Trade and Investment, Andrew Robb, who attended the event, as a great example of the success of the recently revised FTA.
The event was also attended by China International Travel Service Head Office President, Madam Yu Ningning.
CITS is a state-owned enterprise that was established in 1954, and is now the largest of its kind in China, with 122 agencies across the country and numerous subsidiaries in key regions globally, including Australia.
SmartTrans Chairman, Dr Geoff Raby, a former Australian ambassador to China, says the App will have SmartTrans’ “unique mobile platform embedded”, consolidating the wide range of billing and payment licences and agreements the company has with its long established partners in China.
Dr Raby said SmartTrans is expecting that this latest agreement will provide access to another solid and sustainable revenue stream for the company, especially with increasing numbers of outbound tourists from China and growing numbers of inbound tourists from Australia with some 720,000 people visiting China in 2013.
“This partnership with CITS, a highly regarded state-owned enterprise, is a great mark of respect for our company, our credibility and our technology.
“SmartTrans will now work closely with CITS to develop this App and online platform, utilising our mobile payments platform to enable travellers between China and Australia to book and pay for their travel services.
“We see this partnership, along with the unique consolidation of our multiple payment providers on to one platform as further examples of why our technology provides such a compelling turnkey solution to third parties wanting to do business in China, as well as Chinese businesses who wish to access global markets.
“We are currently in negotiations with a number of such parties wanting to use our proprietary platform for these reasons and we look forward to updating shareholders on our progress in this regard in the near future.”