DRIVEN by a need to avoid close contact, the usage of e-wallets has received a boost during the COVID-19 pandemic.
Of course, there is understandably a heightened sense of fear, paranoia and insecurity at play here, with people being extremely cautious especially when it comes to any form of physical contact to prevent the spread of the coronavirus.
As we adapt to the new normal, we tend to find safer alternatives to doing things, including the simple act of paying for purchases which result in more Malaysians opting for the cashless and contactless mode of payment, according to TNG Digital Sdn Bhd CEO Ignatius Ong.
TNG Digital Sdn Bhd is the e-wallet joint venture between CIMB Group Holdings Bhd’s Touch ‘n Go Sdn Bhd and China’s Ant Group.
“For many, the e-wallet is an essential daily app especially in these changing times. The usage of e-Wallets is not only fast but safe and hassle-free,” Ong told FocusM.
“It is especially encouraged during the pandemic as it eliminates the need to withdraw cash, thus enabling users to go entirely cashless and contactless when out and about.”
Growth in e-wallet usage
The future of e-wallet is indeed bright as it is growing in popularity.
The biggest driver of usage, according to Nielsen Malaysia executive director of consumer insights Anil Anthony in a related article in FocusM in 2019 (issue #318), was convenience.
“We believe that adoption will rise driven by the growing popularity of app-based online shops, ride-hailing services, online gaming and cinema ticket booking,” noted Anthony.
But this was before the world as we knew it was plunged into a health crisis so severe that we are still struggling to recover from it, eighteen months down the road.
COVID-19 pandemic aside, however, e-Wallet usage during the past year-and-a-half has grown tremendously.
“With various initiatives such as ePenjana, e-Tunai and eBelia, we have seen Touch ‘n Go e-Wallet’s user base expand, capturing over 16 million users to date. This is an encouraging indicator as we project an upward trajectory of merchant onboarding by year end,” explained Ong.
Touching on merchant on-boarding, he revealed that the company is working very closely with their merchant partners to drive the cashless payment agenda.
“Onboarding more small and medium enterprises (SMEs) and micro merchants to adopt e-commerce and e-payment platforms is something that we strongly encourage as they will have access to more than 16 million users across Malaysia,” he acknowledged.
Meanwhile, consumer behaviour, too, has changed, with Touch ‘n Go e-Wallet seeing an increase in user engagement and the onboarding of new users.
“We recently partnered with the Finance Ministry (MOF) and Malaysia Digital Economy Corporation (MDEC) to drive the Budget 2021 initiatives aimed at supporting local businesses and encouraging online purchases,” recalled Ong.
“Touch ‘n Go e-Wallet is also collaborating with other partners to expand digitisation, promote safe and contactless payments and provide convenience to our customers.
“From the various initiatives, we see a rise in online shopping and customer engagement – especially since users benefit from the various discounts and cashback vouchers when they shop online.”
Technology-driven economy by 2030
Ong said TNG Digital is also encouraged by the Government’s support and fast adoption of digitalisation vis-à-vis the Malaysia Digital Economy Blueprint (MyDIGITAL) initiative which was rolled out in February 2021 with the aim of making Malaysia a technology-driven economy by 2030.
To facilitate the adoption of e-Commerce, TNG Digital introduced a ‘Merchant Dashboard’ for SMEs on the Touch ‘n Go e-Wallet.
The dashboard, Ong explained, is an integrated and comprehensive one-stop business solution crafted for merchants to access information at the tip of their fingers.
An in-app feature, the ‘Merchant Dashboard’ allows merchants to easily manage and track their sales transactions. Merchants are now able to manage higher sales volume as the dashboard provides simple and impactful solutions that support and promote business agility.
“While we continuously expand our acceptance points for the convenience of our users, we are equally vested in the growth of SMEs – making it our key focus in a bid to elevate the economy by enabling simple and impactful solutions,” Ong concluded. – Aug 18, 2021.
