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can china’s cashless e-wallet economy be integrated seamlessly into malaysia?
Many of us have already read, watched a video of, or experienced the cashless concept in China. An interesting fact that I learned during my time here was the adoption of cashless which spiked only 3-4 years ago, during the huge war between the ride sharing players in China.
Retail promotions encouraging the usage of cashless has also been implemented only 3-4 years ago in China. This surprised me to a certain extent as I have always thought that China has been full on cashless way back in the day.
Will Malaysia then be able to reach China’s level of E-Wallet adoption?
Truthfully, I have always been skeptical on Malaysia being a true E-Wallet economy like China. In the United States, E-wallet is definitely not a mainstream payment method there. They do not use it actively for in-store purchase or person-to-person (P2P) transfer. This is because it is a market dominated by credit and debit cards, just like Malaysia.
The fact that Malaysians are relying on discounts and promotions from various local E-Wallet providers tells me that once the discount ends, that is where I felt the usage will end too.
However, what made me rethink this is due to the fact that I have always been thinking on this topic from my perspective, the perspective of a user already using credit cards. What about people that have not got onto the credit card phase yet?
Let’s admit it, applying a credit card is not exactly easy at all. In fact, it is actually quite a hassle. Recent features of online credit card applications done by Ringgit Plus and Compare Hero have indeed aided the process of getting a credit card, but the document submission is still tedious as ever!
In fact, owners of credit cards will have the risk of personal finance mismanagement. A simple google search on credit card mismanagement will give you a slew of contents on “How to be a responsible Credit Card User”
I then think that E-Wallets can actually play a huge role in managing the personal finances of an individual while attempting to make payments more efficient in our day to day life.
I was lucky to have the Group CEO of GHL in my Hot.Pot group. Many great insights was shared on how GHL is becoming the leading payments platform provider to consolidate E-Wallets in Malaysia.
Danny who is the Group CEO of GHL was really impressive with his presentation on the growth of cashless and payment systems in Malaysia. Being one of the leaders in integrating various e-wallets, they have been pushing and encouraging the usage of cashless payments across retailers in Malaysia since the very beginning.
Danny is determined to further amplify their efforts with Alipay not only within Malaysia, but to ASEAN regions and beyond. It is always amazing to see Malaysian companies attacking at scale on the adoption of digital solutions nationwide.
I might think that the current transition for credit card users to e-wallet users might be a stretch for the older generation. Even so, it might not be the case for our younger generation, not when our education minister is also getting on-board the e-wallet train for schools.
With this, parents can track and manage their children’s spending, thus giving better visibility through spending data for families. This in my opinion, will greatly improve the awareness of personal finance to these young users.
Imagine this, if the schools in Malaysia have all adopted the usage of E-Wallets, this new generation of youngsters will only know this method of payment.
They will never really understand the concept of credit, and will probably never apply a credit card, ever.
Extra : For those who are interested to find out in detail about the E-Wallet Landscape in Malaysia, head on over to ecinsider’s “The E-Wallet Infinity War in Malaysia”!