Digital payment adoption boosts GHL System’s outlook

by ASILA JALIL / graphic by MZUKRI MOHAMAD

GHL Systems Bhd’s digital payment adoption in key markets is contributing to a positive outlook for the company in the long-run.

BIMB Securities Sdn Bhd analyst Afifah Abdul Malek maintained a positive view on the company’s long-term outlook given the latter’s broad adoption of e-payment services.

“The shift in consumer behaviour towards e-payment and the continuous effort from governments across GHL key markets such as Malaysia, the Philippines and Thailand, to adopt digital payment will benefit GHL,” she told The Malaysian Reserve recently.

GHL’s business operation saw a 31% year-on-year (YoY) jump in transaction processing value for its card payments services to RM2.9 billion in the second quarter this year despite tougher restrictions on movement restrictions and lockdowns imposed across its key markets.

“In the second half of 2020, there will be another major contribution from the Malaysian government through one-off incentive e-wallet credits worth RM50. GHL stands to benefit from this as it accepts all the appointed e-wallet providers,” said Afifah.

She said recent data by Bank Negara Malaysia also showed an 11% YoY increase in e-payment transaction value (credit card, debit card and e-wallet) to RM20 billion in August.

“Similar trends have also been reported for the Philippines and Thailand’s e-payment transaction value,” Afifah added.

GHL’s online payment arm eGHL on Oct 14 teamed up with McDonald’s Malaysia to provide a broader range of payment options for its McDelivery online ordering service.

In a statement, the company said the cashless payment method offer more flexibility to customers along with the safety and security that simplifies online payments experience through eGHL’s payment solutions.

The payment option includes the addition of FPX (online banking) and e-wallet payment options such as Touch ‘n Go, Boost and GrabPay.

“Its partnership with McDonald’s and HSBC-Sports Direct in providing multi-payment options for customers is in tandem with the increase in demand for online orders and e-commerce,” Afifah said.

GHL is also offering e-vouchers for Covid-19 screening tests through collaboration with Ali Health Sdn Bhd, a subsidiary of BP Healthcare Group. In a statement yesterday, the group said the vouchers include a special e-voucher with a discounted price of RM220 for the RT-PCR Gold Standard test.

“For the convenience of consumers, these Covid-19 screening test e-vouchers can be purchased from selected e-pay merchants through its 44,000 extensive e-pay networks throughout Malaysia.

“These screening test e-vouchers can then be redeemed at any BP Healthcare outlets nationwide,” it said.

The group also collaborated with Shieldcard Holdings Sdn Bhd to offer AXXESS Covid-19 Protect insurance for RM28.50 with three-month coverage.

The insurance protection plan provides a RM2,000 compensation for hospitalisation and RM10,000 for death from Covid-19.

“On top of Covid related incidents, policyholders will also be given a RM10,000 compensation for deaths caused solely by accidental means. AIA General Bhd underwrites the insurance.

“All Malaysians from the age of one month to 65 years old are eligible to be covered by the insurance plan and no restrictions to anyone who faces increased risk; for example frontline staff who are exposed to the pandemic,” the group said.

GHL will also offer packages to sanitise large scale space and surfaces for businesses ranging from small and medium enterprises to multinational corporations and government agencies.

The tie-up with Entopest Environmental Services Sdn Bhd offers prices starting from RM290 for spaces less than 2000 sq ft.

GHL’s share price has doubled in value since mid-March to close at RM2.21 yesterday, valuing it at RM1.68 billion.