The UMT United Mobility Technology AG (WKN 528610, ISIN DE0005286108) founded a subsidiary named iPAYst LLC in Riga building the base for the extension of the sales territory to the Baltic markets Estonia, Latvia and Lithuania as well as Eastern Europa and Russia.
“The markets of the Eastern European States, the Baltics, as well as Russia are very interesting for us. Due to the increasing dispersion of smartphones and the receptiveness towards innovations in technology, we regard it as highly important to establish iPAYst as standard for customer loyalty and mobile payment” says Mr. Erik Nagel, CMO of the UMT United Mobility Technology AG.
According to Mr. Nagel many Western European companies use the Baltic markets as toehold to expand towards Eastern Europe and Russia. This also holds conversely.
“Based on the international orientation and the high level of education in Latvia we specifically choose Riga as location for our Eastern European subsidiary. In many of these countries payment transaction instruments, as for example direct debit, are not as widespread as in Germany. This circumstance makes payments via smartphones a welcome alternative”, explains Mr. Nagel.
During the start-up phase and market development the UMT United Mobility Technology AG cooperates closely
with BalticPay. BalticPay is a specialist within the segment of payment transactions with German roots who has worked successful in the market for several years already. Through the cooperation with BalticPay the UMT United Mobility Technology AG has access to a large amount of existing retailers which are addressed systematically.