Many may not have ca­pac­ity to sus­tain busi­ness on lack of fund­ing, user ac­cep­tance

New Straits Times - - BUSINESS - FARAH ADILLA [email protected]­di­

AX­I­ATA Dig­i­tal Ser­vices, the owner of home­grown e-wal­let Boost, ex­pects the e-wal­let mar­ket to con­sol­i­date to be­tween three and five main play­ers in the next two to three years.

Ax­i­ata Dig­i­tal chief ex­ec­u­tive of­fi­cer Mohd Khairil Ab­dul­lah said there would pos­si­bly be other niche e-wal­lets that fo­cused on spe­cific seg­ments.

“Many e-wal­let play­ers may not have the ca­pac­ity to sus­tain the busi­ness ei­ther fi­nan­cially or in terms of gain­ing user ac­cep­tance fast enough to re­main rel­e­vant.

“In­ter­op­er­abil­ity will also be key and Boost is sup­port­ive of it through our part­ner­ships with an ever-grow­ing list of lo­cal and in­ter­na­tional brands.”

Khairil said there would likely be more providers launch­ing their ser­vices this year.

“We think this is good for the cash­less ecosys­tem as they will help to drive usage and ed­u­cate users on the con­ve­nience, se­cu­rity and ben­e­fits of us­ing an e-wal­let.”

To date, Bank Ne­gara Malaysia has is­sued more than 40 e-money li­cences.

Khairil said last year, Boost grew its user-base by nearly six times. To­day it is the lead­ing ewal­let in Malaysia with more than 3.5 mil­lion reg­is­tered users.

“Our users can use their e-wal­lets at more than 60,000 mer­chant touch­points, on­line and off­line, through­out Malaysia, cov­er­ing a wide range of brands. “This shows Malaysians are ready to go cash­less and it could be down to sev­eral rea­sons.

“For con­sumers, it may be the cash­back re­wards, the con­ve­nience or the se­cu­rity of us­ing an e-wal­let. For the mer­chants, e-wal­lets can be an ef­fec­tive mar­ket­ing as­set. It builds cus­tomer loy­alty and is a pow­er­ful tool for fraud man­age­ment,” he said.

Khairil said it was clear that cus­tomers were look­ing for more life­style fea­tures from their e-wal­let and this was not lim­ited to the younger dig­i­tal na­tives.

“Apart from QR-based pay­ment, we see a grow­ing num­ber of cus­tomers want­ing to use Boost for a num­ber of other day-to-day trans­ac­tions like shop­ping at e-com­merce sites, bill pay­ment, tak­ing pub­lic trans­port and pay­ing for pub­lic on-street park­ing.

Ear­lier, iPay88 Hold­ings Sdn Bhd ex­ec­u­tive di­rec­tor Chan Kok Long said he ex­pected the same trend to take place in the near fu­ture.

Mohd Khairil Ab­dul­lah

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