The wallet has become the most popular form of payment when shopping on Lazada app because of its infrastructure
By LYDIA NATHAN
E-COMMERCE giant Lazada plans to continue leveraging its most popular form of payment, the Lazada Wallet, to create a seamless and efficient method of purchases for its customers.
According to Lazada chief business officer Kevin Lee, the wallet has become the most popular form of payment when shopping on its app because of the ability in its infrastructure.
“One in three people are now using the Lazada Wallet and these numbers go even higher during our Mega Day sales: Our customers are competing for the best deals during this peak time and our infrastructure plays a huge role in supporting that,” he said to The Malaysian Reserve (TMR) in an interview.
Since its launch in April 2018, Lee said the group used Laz Rewards to encourage customers to get rebates when using the wallet, as he found that it was the solution for the bottleneck in payment infrastructure during mega campaigns.
“Once it hits 12am, customers are vying for the sale items and need to make payments to get the deals. We found the wallet to be useful, resulting in higher purchases and orders.
“During the 11.11 campaign this year, we noticed the transactions at its peak were 50% higher than last year. For the 9.9 campaign in 2019, we saw 14 times the amount of orders compared to last year. It becomes a more habitual thing for our customers and it’s a good thing for us,” he noted.
The maximum amount that can be topped up to the wallet is RM2,999 and it has been proven to be secure and fast.
Lee said the wallet meets all the requirements set by Bank Negara Malaysia that includes full penetration testing.
“Being backed by great technology from Alipay, we have been able to use their risk engine driven by big data to make predictions and be ready for the surge of customers during the peak hours.
“We look at the number of transactions per minute during peak hours because the numbers surge. The infrastructure, that’s built in Alipay, allows us to absorb the huge volumes that come in, to which we could adjust the capacity,” Lee added.
He added that a part of the wallet’s future includes increasing engagement with its customers through interaction since that is an area customers are after.
“Since we began hosting Shoppertainment, Laz Games and live stream, it has become popular with our customers. We also launched Wonderful Wallet where customers got to purchase items for RM1 only through the wallet and our active customer numbers spike when we have these interactive initiatives,” Lee said.
Lee opined that if brands and partners can use the wallet, it will complete the ecosystem and allow for more matching opportunities.
“E-commerce is growing quickly and will continue to do so. It is our responsibility to help it grow in terms of seller, brand and customer education. Ensuring people have the best experience is where we want to focus. So, we look at reports of total spending in Malaysia and plan what we could do to grow e-commerce,” Lee said.
Lazada Wallet, for instance, went offline for its 12.12 Grand Year-End Sale campaign which allowed customers to purchase discounted vouchers to be used at selected brick-and-mortar stores as part of its retail innovations.
Customers went to the brand’s selected offline stores on Dec 14-15 to shop for products. A total of 12 brand partners joined the initiative including Senheng, Cerutti, HealthLand, Haagen-Dazs, Viewnet Computer System, King Koil and more.
Lee told TMR that the take-up rate for this campaign had been positive and was an example of wallet’s evolution over the years.
Lee said four hours after the offline redemption kicked off, over one thousand purchases were made at the different partner stores over the weekend.
“Our brand partners also offered additional discounts and our customers received 12% rebate when the vouchers were used. We will continue to focus on how the wallet can provide a better experience as a guiding principle and we will base any future expansion plans off this,” Lee noted.