Besides fintech companies, telcos have been making big pushes towards growing and developing their e-wallets for Malaysia to move into the cashless future.
Digi was part of that trend, with the launch their e-wallet vcash at the end of last year. And now they’ve forged a partnership with AmBank that allows the wallet access to all of AmBank’s merchant POS terminals.
Now, merchants that signed with AmBank will be able to accept Digi’s vcash QR code on top of their usual card and cash services. This seems to provide AmBank with the opportunity to tap into the hot e-wallet race in Malaysia, while in an instant, opening up vcash to a wide variety of merchants.
And to further drive on that momentum, Digi will be signing up small and mid-sized enterprises (SMEs) under what they call a Master Merchant programme in collaboration with AmBank.
E-Wallets Meets SMEs
We’re waiting on more detail on what the Master Merchant programme will entail, but it won’t be the first time an e-wallet tries to stake a foothold in the market using SMEs.
Traditionally, it has always been difficult for smaller mom and pop businesses to gain access to cashless, as setting up a card payment system often requires a bit of upfront cost. This is the gap that many e-wallets have identified as of high potential, and correctly ingratiated themselves into.
Some examples include FavePay’s adopted merchants (though FavePay is not quite an e-wallet), where one of them was th famous SS2 durian stall. Boost meanwhile ingratiated itself into the quintessential Bazaar Ramadhan experience.
Banks Eyeing SMEs
Meanwhile, through this partnership AmBank is able to more easily reach out to the SME market in Malaysia. This segment has grown into a serious interest among banks because SME contribution to Malaysia’s GDP has risen to 37.1% in 2017, a rapid increase from 36.6% in 2016.
The GDP growth that SMEs recorded, exceeded the growth of both Malaysia’s GDP and non-SMEs last year.
Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group said that:
“This strategic tie-up with Digi complements our efforts in broadening our product offerings to existing merchants as well as new merchants, while staying relevant and competitive in the digital landscape.”
“Meanwhile, we will soon be introducing eRemittance promotions for our customers to remit money to their children studying abroad at affordable fees. As part of AmBank’s digital transformation journey, we are designing and implementing numerous new solutions with our customers in mind.”
Featured Image Credit: AmBank
