Title: Modern Payment and Newland Payment Face Legal Battle Over Contract Dispute
Date: September 5, 2024
By: [Your Name], Staff Reporter
Modern Financial Holdings (Chengdu) Co., Ltd., popularly known as Modern Payment, has found itself in a legal tussle with Newland Payment Technology Co., Ltd., with the former being ordered to pay over 5 million yuan by the Fuzhou Ma tai District People’s Court. The case, which involves a contractual dispute, highlights the complexities and challenges within the rapidly evolving payment industry.
According to information available on the China Execution Public Information Network, Modern Payment has a new case filed on September 3, 2024, with an execution amount of approximately 5.15 million yuan. The case is related to a contract dispute with Newland Payment, a company known for its design, research, and development of financial payment POS terminal equipment.
Newland Payment specializes in providing solutions for POS terminals to commercial banks and payment institutions. Their product range includes smart POS, intelligent cashier CPOS, facial recognition FPOS, standard POS, MPOS, and new scanning POS devices. The dispute arises from Modern Payment’s procurement of POS equipment from Newland Payment, which has now escalated to a legal battle.
In addition to the纠纷 with Newland Payment, Modern Payment and its parent company, National Modern Financial Holdings Limited, are also defendants in another contractual dispute case. The plaintiff in this case is Shanghai Donglian Information Technology Co., Ltd., a company that specializes in the independent research, development, and manufacture of smart payment, cloud printing, smart retail, and information security products. The case is scheduled to be heard at the Shanghai Pudong New Area People’s Court on October 23.
Modern Payment, established on September 29, 2010, with a registered capital of 100 million yuan, obtained a payment license in December 2011, allowing it to conduct internet payment and bank card collection services nationwide. However, the company has faced regulatory challenges in the past. In 2015-2016, the People’s Bank of China conducted a special investigation into card collection outsourcing businesses, and Modern Payment was ordered to cease operations in Jilin and Qingdao due to serious issues in the verification of merchant authenticity. Following the update of the People’s Bank of China’s payment license information, Modern Payment’s business scope was adjusted to Class I stored value account operation and Class I payment transaction processing (except in Jilin and Qingdao provinces).
Despite these regulatory setbacks, Modern Payment recently announced through its official public account that it has initiated an IPO plan, aiming to complete the listing within five years. To achieve this goal, the company plans to invest 500 million yuan in special funds to accelerate its transformation and upgrading.
The current legal dispute, however, casts a shadow over Modern Payment’s ambitious plans. Being ordered to pay over 5 million yuan in a contractual dispute with a POS manufacturer is a significant financial setback for a company that is preparing to invest heavily in its IPO.
It is worth noting that disputes between payment institutions and POS manufacturers are not uncommon in the industry. As these entities often work closely together, conflicts can arise from time to time. For instance, in May of this year, a judgment was published on the China Judgment Document Network involving a dispute between POS manufacturer Aiteweilai Electronic Technology (Beijing) Co., Ltd. and payment institution Shanghai Hufu Payment Co., Ltd. The case ended with the court ordering Hufu Payment to pay the manufacturer for outstanding contract obligations.
The payment industry is characterized by a complex web of relationships, and while collaboration is the norm, disputes such as this one serve as a reminder of the risks involved. As Modern Payment navigates this legal challenge, it remains to be seen how this will impact its future growth and IPO plans.
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