E-WALLET players want to play an even bigger game in future.
Most have recorded positive growth in the number of users.
And since they have such momentum going, they are aiming to expand the pool of users by getting more merchants on board to accept e-wallet payments.
The Touch ’n’ Go eWallet, for instance, has seen significant user growth since its inception early last year.
“At the moment, we have over 2.3 million registered eWallet users. We’re also seeing a healthy increase of our user base on a monthly basis. Our aim is to be the number one e-wallet in Malaysia by end of 2019,” says Syahrunizam Samsudin, CEO of TNG Digital Sdn Bhd.
The company is also working towards expanding its merchant list, ranging from retail and food and beverage businesses to transportation.
“We aim to hit our target of 40,000 merchants within the first quarter of this year,” Syahrunizam says.
On CyberSecurity Malaysia’s call to collaborate for safer transactions, he says the company looks forward to any opportunities to improve services, especially when it comes to security.
“Ultimately, we want our users to enjoy convenience that goes hand in hand with security, which would give users peace of mind in conducting any transaction,” he says.
Syahrunizam explains that the Touch ’n’ Go eWallet has faster end-to-end transactions as the app is encrypted with the highest security standards.
“E-wallets are the next evolution in payment systems.
“Our nation has great potential to go cashless because our consumers are highly driven by convenience and technology, and we have seen how it has evolved over time.
“Next-day delivery, e-commerce and mobile shopping are what Malaysians are accustomed to right now,” he says.
Meanwhile, just shy of six months from the app’s launch, GrabPay has increased its merchant base by four times in eight cities around Malaysia.
GrabPay (Malaysia, Philippines and Singapore) managing director Ooi Huey Tyng says there has also been a steady 20% increase in month-on-month transactions with its e-wallet.
“We are seeing our users move from a single use case (transport only) to our other non-transport services (food and parcel delivery and offline payments).
“This figure has tripled since we launched GrabPay Credits, our in-app mobile wallet,” she adds.
Ooi notes that one in five GrabPay users accesses the app daily, either for transport, food, parcel delivery or offline payments.
She says GrabPay is also working with property developer UEM Sunrise Bhd and Monash University Malaysia to set up cashless areas to benefit merchants and patrons in the Publika Mall, Kuala Lumpur, and the university grounds in Bandar Sunway, Selangor.
Ooi also says GrabPay views security seriously and works with trusted partners with an award-winning fraud detection engine to ensure all GrabPay transactions are safe.
“Our strong in-house fraud and security team have also designed algorithms and robust processes that are able to detect and prevent fraud.
“GrabPay has also introduced a mandatory six-digit GrabPay pin that ensures that credits are safe,” she adds.
Green Packet Bhd group CEO Tan Kay Yen says that the company’s e-wallet, kiplePay, meets or even exceeds current security industry standards.
“All personal and financial data is encrypted and protected.
“No payment goes through until and unless you approve the payment with your fingerprint or six-digit security pin.
“Eventually, other biometric authorizations can be added like facial or gesture recognition. This allays the fears of losing the handphone which contains your e-wallet,” he says.
Tan agrees that e-wallets are still budding in Malaysia, where it is mainly used for food and beverage businesses and transport.
“Nevertheless, with the continued rapid adoption of mobile payments and the push for a cashless society from Bank Negara Malaysia, e-wallets will be one of the major methods of payment in Malaysia one day,” he says.
He believes that e-wallets are generally suitable for small transactions, replacing cash in physical wallets.
“In the long run, e-wallets are not just creating ease of payment, but they contribute to building a collaborative ecosystem to benefit both customers and merchants,” Tan says.