Friday, 17 Jan 2020

E-WALLETS IN MALAYSIA: A BASIC GUIDE

Malaysia over the last few years has been a hotbed for e-wallets, with new ones cropping up almost every other month. To date, there are more than 40 digital wallet platforms operating in the country. The rapid growth experienced by e-wallets is also in line with Bank Negara’s aim to transform Malaysia into a cashless nation by 2020, with the central bank establishing a blueprint emphasising on mobile-based payments. 

    Recognising the importance of e-wallets as propellers of a digital economy, the government has even pledged RM450 million in the recently tabled Budget 2020 to give qualified Malaysians aged 18 and above a one-time RM30 digital stimulus to encourage a higher adoption rate amongst users by next year.  

    Right now, e-wallets are already accepted by businesses of all kinds, from established retail stores and F&B outlets to promising new ventures that proudly display e-wallet QR codes on flashy posters. Now, if for some reason you still have not jumped on the e-wallet bandwagon or you are having doubts about embracing mobile payments at your establishment, here’s a quick start guide to set you off. 

    Introduction to E-Wallets

    An e-wallet is much like a physical wallet, except for the fact that money appears digitally in an application in your phone. And just like the wallet in your pocket, you need to add money into the e-wallet for safekeeping until the said funds are required to make transactions. Almost all e-wallets allow funds to be added via a wide array of methods, including online bank transfers, credit cards, and debit cards. When making a purchase at a business that accepts mobile payments, customers can pay via many ways including QR code scanning, tap-and-pay with the NFC function on the phone, and even through an accompanying physical card in some cases.

      Benefits of E-Wallets for Businesses

      As e-wallets fight for dominance, they offer various perks to encourage users to get on board their applications. These rewards include loyalty points, instant cashback, and other forms of gamification that can benefit the customers. Routinely, the e-wallet platforms also work closely with merchants on various campaigns that benefit businesses by attracting more foot traffic as well increase brand awareness. 

      E-wallets provide the advantage of digitalising money too, ensuring that payments made to you are secure while speeding up transactions at the cash register. No more waiting for customers fishing for physical cash at the register – it’s just a tap now. Various studies have also shown that customers favour businesses that have successfully adopted mobile payments, as it generally means more convenience for consumers.

      Moreover, the digitalisation of transactions makes it much easier to manage your business, as certain e-wallets like Boost provide a clear overview of your finances for easier bookkeeping. The tracking feature also reduces the potential for fraudulent transactions, in addition to the added security within the app to protect your money if you lose your device.

      Choosing An E-Wallet

      At the end of the day, each digital wallet comes with its own set of benefits and promotions for both merchants and consumers to advantage of. It’s best to look into e-wallet applications that cater to the specific needs of a business, whether it’s a restaurant, a tour agency, or a new chain of convenience store. The best option would be to host several types of e-wallets that are popular amongst consumers while also being advantageous to business owners.