AN ONLINE payment “tsunami” is anticipated this year, spurred by a rapid growth in the utilisation of e-wallet and QR (quick response) code which is accelerated by the healthy trend of cashless payments among smartphone users.
Online payment solution provider iPay88 Sdn Bhd said the shift towards cashless payment would also be satisfied by the introduction of at least 10 more e-wallet platforms in 2018.
“We expect more than 10 e-wallets to be launched this year. “If one bank launches its own e-wallet system, other banks will follow suit quickly, together with other third-party players,” iPay88 ED Chan Kok Long (picture) said in a media conference in Kuala Lumpur yesterday.
As it is, Chan added that Bank Negara Malaysia has already issued more than 30 e-wallet licences in the country.
He said the mobile wallet trend is expected to push Malaysia towards becoming a cashless society even quicker than the 2050 deadline that was projected earlier.
Chan said 80% of the transactions in the country are currently still by cash, while 20% are done via online banking and credit cards.
“The e-wallet is going to replace this 80% portion. It covers consumers from a very broad spectrum. “It can be from corporate consumers, down to pasar malam (night market) hawkers. “The moment e-wallets can accept payment from a wide spectrum of merchants, we will no longer need cash,” Chan said.
He said the success of any e-wallet system to be introduced by a company relies much on the economies of scale relating to the size of merchants and consumer base, or communities that are using the platform.
He said Payments Network Malaysia Sdn Bhd is also expected to introduce Malaysia’s real-time retail payments platform in the future, which is going to boost the usage of mobile payments and e-wallets.
iPay88 itself is expected to introduce a white-label e-wallet platform very soon once the licence is approved by the authorities.
The company has projected its online transactions volume and value to double this year from the 58.5 million online transactions worth RM6.6 billion recorded in 2017, in line with the growth of mobile e-commerce.
According to a 2017 report by ComScore Inc, Malaysian digital users between the ages of 15 and 24 mostly access the Internet via mobile devices only, while those between 24 and 35 are multi-platform users — including desktop computers and mobile devices.
“Mobile e-commerce became prevalent and started overtaking desktop e-commerce in the second quarter of 2016 (2Q16). “Our system saw a significant record high of 9.3 million Internet traffic from mobile shoppers in 4Q17, three times that of desktop traffic,” Chan added.
Data from iPay88 also shows that transportation services experienced the biggest growth in online retail between 2016 and 2017, with a 276% increase.
This was followed by personal hygiene and skin care products at 179%.
Moreover, delivery services saw an increase of 177% during the same period.