PETALING JAYA: Against the backdrop of a highly competitive e-wallet segment, TNG Digital Sdn Bhd aims to expand its network of merchant partners in 2020 to stay ahead of its competitors.
Its CEO Ignatius Ong (pix) said the strategy for the company this year is to focus on roping in smaller merchants that are relevant to Malaysians such as roadside stalls, mamak stalls, convenience stores, wet markets and pasar malam (night markets).
“One of the ways that we continue to have an advantage over our competitors is by being at places that are relevant to the Malaysian experience,” he told SunBiz.
Ong said the focus on smaller merchants is in line with the e-wallet’s main objective is to replace cash transactions.
Towards this end, the e-wallet player will be working closely with agencies to partner with more merchants in a faster pace, including in small towns across Malaysia.
“We want to make sure our offerings can be enjoyed and benefit all Malaysians.”
Ong estimated that currently TNG Digital has attracted 60% of the big merchants with the likes of KFC, Shell and Legoland.
“For this segment, we want to work more with these key accounts to see how we could bring more value to our merchants and ourselves,” he said.
For example, discounts and promotions can be offered to a specific demographic within a merchant’s lean period.
Currently TNG Digital has a user base of 6.8 million people with more than 110,000 merchant partners.
With regard to its toll offering, Ong said its radio frequency identification (RFID) technology is being used in 25 highways in Malaysia.
“In the first or second quarter of 2020, we are expecting to get PLUS highways on board and subsequently we’re expecting a lot more take-up for the solution by highway users.”
In addition, TNG Digital has also introduced a pay direct system for the existing 12 million Touch ‘n Go cardholders, which would allow them to use the e-wallet to top up their cards via banks.
The e-wallet provider is also looking at offering investment products through its platform this year, as only 3% of the 24 million working population in Malaysia undertake investment activities.
“From an e-wallet perspective, we want to see the platform used to roll out products that are relevant to people. In that sense, we don’t pay too much attention to what our competitors do, but more important is to have a product that people want. At the end of the day, it’s all about financial inclusivity.”
With 48 e-money licences issued by Bank Negara Malaysia, there has been an expectation of consolidation among the e-wallet service providers.
Ong admitted that there are too many e-wallet players in Malaysia.
“If you look at China, a country with 1.4 billion people, there are only two e-wallets, I don’t see how Malaysia with a population of 32 million needs more than three.
“Moving forward, it’s all about how the strong will survive and flourish, and we’re definitely one of those guys,” he said.
