By SULHI KHALID / Pic By VALYOU
VALYOU Sdn Bhd, a Malaysian financial technology subsidiary of Telenor Group, has targeted to reach 90% of digitisation adoption in its transactions by 2021.
According to the e-wallet remittance service provider, to date, Valyou has reached a total of 60% of digitisation in its transactions, while remaining 40% is through the conventional channel using physical cash- in-cash-out merchants.
“The idea is for you to empower the customers and to make it convenient for them to send monies.
“This means cost to us will be considerably reduced as there is cost to cash management in physical transactions,” Valyou CEO Prasanna Rao said during Valyou-Western Union Partnership event in Kuala Lumpur yesterday.
Prasanna said the company is focusing on the underserved market and communities in rural areas of the country.
“Valyou sees a significant number of its transactions undertaken from rural locations in Malaysia and this corresponds on the receiving side with 80% residing in rural parts of their country,” he said.
Prasanna added, based from its record, the average ticket size of remittance ranges from RM1,000 to RM1,200 per transaction.
“From our data, Vietnam shows a high number of ticket size followed by Nepal. For Indonesia, we see a high number of frequency (transactions), but less amount of ticket size.”
On the emergence of various e-wallet service providers in Malaysia, Western Union regional director (Philippines, Malaysia and Brunei) Jeffrey Navarro said the growth shows financial technology is a vibrant industry and consumers benefit from the various options.
“Competition is good and it challenges the industry players to provide the best service to consumers,” he said during the event yesterday.
Bank Negara Malaysia’s statistics show the central bank has issued a total of 42 e-money licences to 37 non-banks and five banks.
On a separate note, Western Union — an international cross-currency money service provider — has inked a partnership with Valyou as part of its effort to reach out to the unbanked and underbanked communities, especially in Malaysia’s rural areas.
“We stand for convenient money movement, serving global citizens to help build bridges across economies, geo- graphies and cultures.
“We believe fintech has only just began to revolutionise markets in a way that will continue to include more of the ‘unbanked and underbanked’ and will continue to buoy the growth of international markets by connecting talent across the globe,” Jeffrey said.
Headquartered in Kuala Lumpur, Valyou has 24 branches across Malaysia, 17 international remittance agents and over 1,500 cash-in-cash-out merchants nationwide.
The strategic partnership between Valyou and Western Union Malaysia will enable consumers in Malaysia to send money to Western Union agents across Bangladesh, Indonesia, the Philippines, India,Vietnam, Myanmar, Cambodia, China and Nigeria.