In Malaysia, e-wallets have gained immense popularity, with over 50% of the population embracing this convenient payment method. Recognizing the shift towards digital transactions, businesses are now integrating e-wallets to cater to the nation's tech-savvy customer base. This article serves as a detailed guide for businesses on understanding, choosing, and seamlessly adopting e-wallets.

How Did E-Wallets Gain Popularity?

The surge in e-wallet adoption in Malaysia can be attributed to the COVID-19 pandemic, which prompted a reduced reliance on cash. To encourage digital payments, the Malaysian government offered financial incentives, leading to a significant shift towards cashless transactions. A 2020 Mastercard study revealed that Malaysia led its Southeast Asian neighbors in digital wallet usage by 40%.

How Do E-Wallets Work?

To fully harness the potential of e-wallets and seamlessly integrate them into your online store, it is crucial to understand their underlying model and operational mechanics.

Account Creation

To create an e-wallet account, users can either download the app on their smartphones or register on a dedicated website. This involves providing some personal information, with certain e-wallets offering the option to link bank accounts or credit/debit cards for seamless transactions, though not all may require this step.

Funding the Wallet

Users can fund their e-wallets by transferring money from linked bank accounts or cards. Additionally, they can utilize top-up options such as direct deposits, bank transfers, credit/debit card transactions, or cash deposits at designated locations.

Storing Information

E-wallets ensure secure storage of user information, covering payment details, transaction history, and occasionally loyalty points or rewards. This comprehensive storage mechanism is designed to provide users with a seamless and secure experience while using their digital wallets.

Making Payments

Users make payments using their e-wallets by selecting it as their preferred payment method, whether for in-store transactions at supported merchants or online purchases. The convenience of contactless payments is enhanced through features like QR codes, providing users with a swift and efficient means of completing transactions securely.

Special Features

E-wallets often include enticing features such as cashback, discounts, loyalty programs, and in-app promotions to motivate users and encourage increased usage. These special features enhance the overall user experience, providing added value and incentives for individuals to engage with the e-wallet platform regularly.

Why Should Businesses in Malaysia Accept E-Wallets?

Reduce Drop-offs at Checkout

Shopify reported that 18% of online shoppers abandon carts due to complicated checkouts. Adding e-wallets as a payment method could help shorten the checkout process, allowing customers to securely save their payment information and complete purchases with just one click.

If you are losing customers at the checkout stage, check out 5 recommendations on how to reduce your drop-off rate.

Encourage Repeat Purchases

Many users are increasingly favoring e-wallets due to their promotional benefits. Remarkably, 91% of Malaysians express a strong inclination towards e-wallet usage, even in the absence of specific promotional offers.

By aligning your business with the preferences of consumers who favor this payment method, you can actively cultivate repeat purchases through the convenience and advantages offered by e-wallets in your store.

Streamline Checkout Process

With 58% of Malaysian consumers purchasing through mobile devices, having a mobile-friendly payment method is essential. E-wallets are designed with features like QR codes and auto-fill for a seamless mobile checkout experience.

Have a look at our insights on how to find a suitable mobile payment method to optimize your online store’s mobile experience.

How to Choose Suitable E-Wallets for Your Business?

With numerous options available, businesses should consider the following criteria:

Line of Business

Different e-wallets often establish a strong presence and user base within specific industries. For instance, some e-wallets, such as GrabPay and Touch' n Go, are mainly used for buying daily goods, while others cater to fashion and cosmetic retailers like ShopeePay. Recognizing this before choosing an e-wallet will help you further understand whether your payment method is aligned with your e-commerce store.

Loyalty Programs

Choosing e-wallet providers with frequent promotions and robust loyalty programs is crucial for businesses. Opting for platforms that consistently offer incentives becomes a powerful strategy, enhancing customer retention and driving increased sales. Aligning with e-wallets that prioritize regular promotions allows businesses to attract and retain customers effectively.

Main Users

Consider the demographic and location preferences when choosing e-wallets for your business. Different e-wallets cater to distinct age groups, so align your selection with your target demographic. Additionally, e-wallets often collaborate with local merchants, providing specific promotions. Understanding the geographic location is essential to target a specific user base for your business.

Popular E-Wallet Options in Malaysia

• GrabPay

• DuitNow

• Touch ‘n Go

• Shopee Pay

• Google Pay

Most businesses opt to offer multiple e-wallet choices to cater to diverse customer preferences.

How to Integrate E-Wallet Payments into Your Online Business?

To start offering e-wallets at checkout, partner with a payment gateway that supports multiple e-wallets. Opn Payments, a trusted partner with a decade of experience, offers a full suite of payment functionalities, ensuring seamless and secure online payments.

Setting Up to Accept E-Wallet Payments with Opn Payments

1. Create an Account: Register a business account with Opn Payments to access all payment methods, including the various e-wallets preferred by customers in Malaysia.

2. Activate Your Live Account: Provide the required documents for identity and business verification through Opn’s dashboard. (No hard copies or in-person application required!)

3. Test and Launch: After the Opn KYC team reviews your documents, test the integration to ensure smooth operation. (Opn offers a test environment)

4. Go Live: Once thoroughly tested, you are ready to start accepting actual payment transactions from customers.

The local support team is based out of Kuala Lumpur and has extensive experience in payments and Malaysia’s e-commerce landscape. If you have any questions or would like a custom payment solution designed for your business, get in touch.