Over the past couple of years, FinTech developments have certainly revolutionised many things in Malaysia, and perhaps one of the most visible changes it has brought is in how most Malaysians pay for the many products and services that they enjoy on a daily basis.
With the widespread popularity of e-payment or e-wallet systems in Malaysia, one could safely say that the days of needing to have a substantial amount of cash handy to facilitate this are all but numbered. Certainly, two key factors governs one’s choice of e-wallets, and these would be spending habits and of course, that lifestyle appeal of a certain brand representing this service.
Boost, GrabPay, and Fave are just some familiar names fronting the e-wallet industry in Malaysia. With adoption rates rising, it’s not uncommon for Malaysians to have multiple (and we’re talking upwards of three) e-wallets at once, each used for different purposes and to give users as much bang for their buck and convenience of payment as possible. There are many more than the three mentioned above in the industry, and here are four of the more innovative and niche systems in Malaysia who are doing electronic wallets, but with a twist.
AT THE TOUCH OF A BUTTON
The Touch ’n Go name has been ingrained in the life of every Malaysian for several years now. They were the first to introduce a cashless system for toll payments in the country with their prepaid card model, and had then gone on to implement the system onto public transport, first on the KTM and now encompassing all bus and rail lines in the country. So their foray into the e-wallet scene was a long time coming.
First launched for public use in early 2018, the Touch ‘n Go eWallet is a collaborative effort between Touch ‘n Go and Ant Financial Services Group, formerly Alipay and an affiliate company of Alibaba group. The app is owned and developed by TNG Digital Sdn Bhd. Starting off a new product for an established brand like Touch ‘n Go (TNG) means that they had a massive existing user base that can easily be converted, and can also be the reason they’re one of the fastest-growing apps in the sector over the past two years. But it’s not all down to that, as the TNG eWallet brings with it integrated payment on services otherwise underserved by the apps we’ve already seen.
Firstly, toll payments. It’s a no brainer for them to integrate their number one service into the app, and though users aren’t able to directly top up their existing TNG card balance through the app (hopefully this will be available soon), the workaround is PayDirect, where users link their TNG cards to the app and toll charges will be deducted from your wallet balance instead of your card. This means no more hunting down a convenience store or queuing in the tambah nilai lane when you run out of balance as you can top-up right from your phone. This service also allowed TNG to introduce RFID payment systems at tolls directly linked to the eWallet, which will eventually replace all SmartTAG lanes on major highways.
The recently introduced parking payment also allows users to pay for street parking in major city municipals, starting off with Kuala Lumpur, Subang Jaya and Putrajaya in the Klang Valley, with more on the way. Aside from that users are also able to pay their utility bills, in addition to enjoying cashback and supported payments at major retailers and food & beverage locations.
Coming out strong after the growing pains of the past two years, it’s clear that TNG eWallet is quickly making its way up the ranks to become one of the country’s major e-wallet providers, and with RFID rolling out to more highways soon, it seems like this app will be a staple on our smartphones.
SETEL UP WITH EASE
Setel is Malaysia’s first cashless fuel payment system, developed by Petronas for the convenience of its millions of customers nationwide. It also is the first e-payment system to be linked to fuel kiosks in the whole of South East Asia, an impressive feat coming from a region that has its fair share of super successful app-based technologies. This is an e-wallet that allows one to pay for fuel transactions at any participating Petronas fuel kiosk. Right now, Setel can be used at all Petronas outlets throughout the Klang Valley but plans are afoot to extend this nationwide by next year.
First launched in July 2018, Setel integrates payment and loyalty benefits into one app. Furthermore, customers can avoid the RM200 hold incurred when using credit and debit cards by utilising the app’s e-wallet feature, perhaps one of the apps biggest draws. All transactions are tracked, and its convenient e-receipt facility allows for a better overview of one’s expenses.
Available on both Android and iOS cell phones and devices, Setel’s main benefits lie in the convenience and safety offers to the public when at the fuel kiosk. Yes, you don’t need to get down from your car to use the card machine at the pump, or walk over to the service counter to make payment.
With Setel, payment can be done in three steps in the safety and airconditioned comfort of the car. First, key in the pump number where your car‘s at. Then, choose the amount of fuel needed, and then enter your 6-digit security personal identification number to activate the pump. Of course, then you do have to get down from the car to operate the pump!
A big plus point is that Setel payments are not subject to the preauthorisation charge imposed when one uses a credit or debit when tanking up on gas. Moreover, you can continue collecting Petronas Mesra rewards card points and keep track of these points through your Setel app for maximum convenience. Yes, once you’ve linked your Petronas Mesra card to the app, it automatically collects rewards points for you whenever you hit the pumps and you don’t even need to have the physical card with you. Points can also be directly converted to credit in your Setel balance, meaning your next full tank could be free and you don’t even need to walk over to the counter to claim it!
WE WILL, WE WILL ROCK YOU!
WeChat has been described as China’s “app for everything†and now, it also has a convenient e-wallet extension to boot! Launched in Malaysia back in August 2018, following its runaway success in China where it has over 400 million users, WeChat Pay is banking on becoming a hit in Malaysia as well as this country already has over 20 million active WeChat users. And yes, Malaysia is the first country to receive the WeChat Pay feature outside of China and it can be used in our local currency – the ringgit.
One of the most popular payment methods from this is app is called Quick Pay, where vendors can scan a QR code on a customer’s mobile phone to facilitate a quick payment transaction. And to start using this, all you have to do is link your debit or credit card to your WeChat Pay account. Then, it’s just a matter of topping up your e-wallet balance and the world is your oyster! Start purchasing things with WeChat Pay at any participating online and offline outlets. Yes, you can even purchase flight tickets with this app.
With this app, you can also send and receive money with its Money Packet feature. Whether you’re sending money to family or splitting the lunch bill, Money Packet is an in-app feature that allows you to conveniently make payments between individuals or groups. Besides facilitating payments, Money Packet is also a great way to dish out cash gifts. So, the next time you plan on handing out an angpow or some duit raya, forget the traditional way and send it via Money Packet…
But perhaps the most outstanding feature of WeChat Pay is that users can also choose to withdraw their e-wallet balance at any bank or automated teller machine (ATM) in Malaysia. And yes, you can withdraw your balance at any time with zero processing fees charged to you!
GO-ING TO NEW NICHES
With a launch date of late October last year, GoPayz is the newest app on this list. It still has some room to grow before being a serious competitor to the other household names in the industry, but it’s already paving its own way by providing a service that is niche in the FinTech scene.
GoPayz is an e-wallet with a difference, allowing users to subscribe to insurance and invest their money, in addition to the basic e-wallet functions. It’s not the first product to offer online insurance, but it is the first to combine that with a digital wallet, allowing users to top-up and pay for their daily necessities while also being able to subscribe to insurance plans and grow some of that money in investment trusts.
The app is developed by U Mobile Services Sdn Bhd, and provides insurance coverage through GoLife insurance, a life insurance provider which the telco company launched a few years ago that is backed by SunLife insurance. GoPayz users can subscribe to the GoLife Plus plan with a starting premium of only MYR13 and can add on additional car, snatch theft or personal accident coverage as they see fit, all from the same app. In the same vein, users can also invest their wallet balance in more than 450 unit trusts from 30 finance houses that are offered in-app. The wealth service is available in partnership with FSMOne, allowing you to speak to a qualified professional for advice in choosing the trust that fits your wants.
On the e-wallet front, it’s pretty standard fare; top-up your desired amount and spend it on what you want. With GoPayz, instead of relying on merchant adoption like Boost or GrabPay, all GoPayz users are provided with a virtual Visa, Mastercard or Union Pay card, allowing them to wave at any major retailer. The virtual card can be converted to a physical prepaid credit card that will soon be enabled for overseas usage, expanding the usage to way more than just on our shores.
The potential for GoPayz seems pretty good, so it will be exciting to see what they can offer in the next few years once they work out most of their growing pains and launch their full range of services. Then it’s a matter of whether they can compete with the big boys and take their share of the e-wallet market in Malaysia.
TEXT ELLFIAN RAHIM & NEDA AL-ASEDI
