E-wallet players to consolidate by early next year

Consolidation is important in order to drive the growth of the industry since the cost of running an e-wallet service is relatively high

by S BIRRUNTHA/ pic by TMR FILE

THE local e-wallet sector is expected to consolidate as soon as early next year, as the market needs reliable large players to drum up the excitement of using e-wallets among Malaysians, said Boost CEO Mohd Khairil Abdullah (picture).

He said the consolidation is important in order to drive the growth of the industry since the cost of running an e-wallet service is relatively high.

“I think the consolidation will happen on two fronts. The first one is bigger e-wallet players might buy off certain small players and merge their businesses.

“Some of the bigger players might actually be interested to pick up some of the smaller players who have an interesting use case or an angle that the players want to acquire,” he told reporters after the launch of Boost’s new and upgraded features in Kuala Lumpur yesterday.

“Secondly, the new and small e-wallet players might just die-off and disappear in the market. We are now seeing so many small players who are starting to sort of go silent on their product.

“So, that’s how you move from 40 over players to three or five players in the country and I think it is extremely necessary,” he added.

Mohd Khairil added that the e-wallet business requires fair funding, especially in terms of providing incentives and attractions to users.

“From our side, we are very encouraging and supportive of the three big Cs — competition, collaboration and consolidation.

“As long as there are no monopolistic practices, I think more people will try out using different e-wallets,” he said.

Yesterday, The Malaysian Reserve reported TNG Digital Sdn Bhd CEO Ignatius Ong echoing Khairil’s previous sentiment that consolidation between e-wallet players would happen in the country.

Meanwhile, Boost has introduced three new and upgraded features to its e-wallet — namely BoostUp, CashUp and UnionPay QR.

BoostUp also known as the Shake Rewards, is designed to reward loyal users a more comprehensive and exciting set of prizes, as well as lifestyle experiences on top of cashback.

Whereas, CashUp is a new savings feature that gives a boost to the online shopping experience, where users can automatically enjoy cashback from online retail partners.

The UnionPay QR payment service is a feature that will give consumers more options and greater accessibility to go cashless with ease in Malaysia.

The payment service will soon be expanded to 11 million UnionPay QR merchants across 31 countries.

According to Mohd Khairil, the features will provide Malaysians better reasons to go cashless and seamlessly transact while enjoying a more rewarding cashless experience.

“This will hopefully further encourage new and existing users to make going cashless a natural part of their daily lifestyle.

“As of now, we have 4.8 million users on our platform, and we are targeting to achieve about 10 million users with the introduction of new upgraded features.

“It is an important milestone for us and we hope it sets the tone for the next phase of Boost,” he said.