SINGAPORE — Telecommunications firm Singtel and local gaming firm Razer have teamed up to create what they hope will become the largest e-payment network in the region.

The two companies inked a memorandum of understanding on Wednesday (May 2), and while there was no specific date on when the e-payment network would be launched, the parties said in a joint media release that the interoperability of their e-payments systems would create “one of the largest connected e-payment networks in South-east Asia”.

Mobile wallet users of Singtel and its regional associates will be able to seamlessly access Razer’s e-payment merchant network of “over a million payment points, the zGold virtual credit system, and Razer’s full suite of gamer-related digital services, which has more than 40 million registered users”, said the media release.

Razer’s zGold is a virtual credit service that allows gamers to purchase virtual goods and items from over 2,500 different games.

At the same time, Razer will be able to tap on Singtel Group’s more than a million merchant points across Asia, and gain access to over 680 million mobile customers.

The two firms’ partnership comes as the battle for e-payments dominance heats up in the region, as industry players aim to capture a digital economy reported to be worth US$50 billion (S$66.8 billion) last year.

They include Chinese firms Tencent, which owns WeChat Pay, and Alibaba’s Alipay. WeChat Pay is expected to launch in Malaysia this year after the firm obtained its e-payment licence for local transactions in the country.

Responding to questions on the exclusivity of the unnamed e-payment partnership, Mr Arthur Lang, chief executive officer (CEO) of Singtel's international group said that it was “the Star Alliance of e-payments”.

Star Alliance, which Singapore Airlines is a member of, is one of the world’s largest airline alliances with over two dozen members.

Mr Lang added that they hope to bring more “like-minded partners together” to grow the network.

In March, Singtel announced its intentions to connect its Dash mobile wallet with its regional affiliates, starting with Thai mobile operator AIS from the middle of this year. The plan will link more than 50 million registered wallet users with more than a million merchant points across Asia.

Razer also announced its intention last month to acquire virtual currency firm MOL Global for S$81 million, with the latter's online payment gateway used by major companies such as Lazada, Grab and Uniqlo. MOL handled more than US$1.1 billion digital payments last year, said the parties.

Razer’s CEO Tan Min-Liang expects the acquisition of MOL to be completed by May 10.

On Wednesday, Singtel and Razer also announced plans to collaborate on e-sports and gaming-related digital media, as well as telecommunication services across the region.

These include organising e-sports events in Singapore, and grooming regional e-sports athletes.

The two partners are also exploring ways to create broadband plans, mobile services, and e-sports content for their customers.