IF you’ve been planning on starting your own business, one consideration that you should take into account is whether you should adopt the e-wallet system as one of your customer payment methods.
Chances are you’ve noticed that small- and large-scale physical and online retailers are enabling their customers to pay via e-wallet apps such as Boost, GrabPay, Alipay, and Sarawak’s very own Sarawak Pay.
E-wallet or digital wallet, which is basically the digital version of your physical wallet, is meant to replace the use of cash and credit cards so that users can have a more convenient and seamless shopping experience.
Although still in its infancy in Malaysia, e-wallets are expected to grow; in fact, the Malaysian government through Bank Negara Malaysia is driving the migration to e-payments, having issued five bank and 40 non-bank e-money licences so far.
Benefits from e-wallets
As mentioned, e-wallets can enhance customer experience by simplifying their checkout process, as customers can now use their mobile device to tap, scan, or auto-fill fields to complete their purchase.
Through e-wallet providers, you can also reward your customers with promotions such as discounts, cash rebates, and reward points, as opposed to sending these perks via e-mail or snail mail afterwards.
As a payment method, e-wallets are more secure and safe. This is because your account information and that of your customers is encrypted, so authorisation from both parties is required to make any purchase or transaction.
With the e-wallet app, you can access your customers’ shopping preferences and history in real time to better plan your marketing strategies through your customers’ needs.
Since transactions are immediate, you also can gain access to real-time data to manage your costs and budget, thus keeping track of your finances more effectively.
Above all, by adopting the e-wallet system, you are putting your business ahead of your competition, especially in the digital economy.
With more and more consumers owning a smartphone making their purchases online, in time they will be more willing to adopt new technology and eventually opt to go cashless.
Considerations before adoption
To begin with, ensure that you have a reliable Internet connection before setting up a merchant account, since transactions via e-wallets require Internet connectivity.
Given that there are several e-wallet providers out there, conduct some research to determine one that suits you best, from e-wallets that your target customers are using to charges for transaction fees.
Most importantly, since not every consumer is using an e-wallet app, provide the e-wallet system as a form of payment alongside cash and credit/debit cards to give your customers varied payment options when purchasing your products or services.
This is a weekly column by SarawakYES! – an initiative driven by Faradale Media-M Sdn Bhd and supported by Angkatan Zaman Mansang (Azam) Sarawak – to provide advice and stories on the topics of education and careers to support Sarawakians seeking to achieve their dreams. Join us on Facebook, Twitter, Instagram and YouTube.