Malaysia builds platform for e-commerce boom

KUALA LUMPUR — Malaysian people’s love for online shopping has led to an increase in transactions on mobile platforms.

The data compiled from Malaysia’s three major online marketplaces — Lazada, 11street and Shopee — revealed that 70 percent of the online transactions on Single’s Day and MyCyber sales were done through mobile devices, said iPay88, a leading regional payment gateway provider in Southeast Asia.

“Mobile users are growing faster than we anticipated, and we expect the momentum to continue,” Ipay 88’s executive director and co-founder Chan Kok Long said in a recent interview.

According to the Malaysian Central Bank, there are 42.8 million mobile phone subscriptions in the country, with smartphone penetration at 70 percent and expected to increase.

One key driver is the introduction of mobile payments, with several banks looking to launch Quick Response Code wallets.

IPay88 is currently the payment gateway market leader in Malaysia, accounting for 60 percent of online transactions.

Chan also believed the two major Chinese online payment companies — Alipay and WeChat Pay — making their ways into Malaysia e-payment segment could potentially double the online transactions.

“When you see m-commerce growing tremendously, the next thing will be mobile wallets. It is no doubt that they (the two Chinese players) will contribute a lot to the online transactions in Malaysia going forward,” Chan said.

Citing Alipay as an example, he said, the retail transaction volume has grown robustly since it was launched four months ago.

“Although Alipay is new in Malaysia, the growth potential is tremendous because of the increasing Chinese tourists in Malaysia,” Chan said, adding that more Malaysian retailers have to adopt the payment system.

Chan also sees great potential from WeChat Pay, which will be unveiled in Malaysia next year, as it has 20 million WeChat holders in Malaysia and 600 million active users in China.

Malaysia is ahead of its neighbors in embracing cashless payment, which Chan attributed to its strategic position, substantial population and better infrastructure, in addition to the government’s encouraging policies.

“Malaysians are more ready than their counterparts in the Association of Southeast Asian Nations, also because of the Alibaba-led Digital Free Trade Zone, which is expected to drive the country’s e-economy,” Chan said.