98% of the Malaysian population rely on smartphones. This tech burst has made virtual payments a favorite method for this economy. People prefer QR scanners, e-bank transfers, P2P platforms, and e-wallets instead of physical currency.
Touch 'n Go is an e-wallet app that has made cashless transactions more manageable and smoother. This blog post highlights how this app leads Malaysia's cashless payment system.
Why Is Malaysia Going Cashless
According to the Malaysia Digital Economy Blueprint (MyDIGITAL), Malaysia should become a regional leader in the digital economy by 2030. Their vision of a digitally driven nation includes cashless transactions to improve and sustain the quality of living. Here is why contactless payments are more convenient:
1. Faster
Your customers can save time and avoid the hassle of visiting a bank or an ATM to withdraw cash. It is especially convenient for smaller payments. Instead of counting notes and coins, they can tap on their phones a few times to transfer money.
For busy retail businesses, this method saves people from waiting at checkout lines. It increases consumer satisfaction and your business rapport.
2. Government Supported
The Malaysian government introduced the ePenjana initiative in 2020. It was an incentive for those who used e-wallets for online transactions during COVID-19. That three-month credit program helped shift the population's focus to cashless payments. Since then, e-wallets have gained popularity.
Note that Touch 'n Go was one of the three e-wallet apps partnered with the government for this venture.
3. Reduced Theft Risk
Malaysia's cashless payment ecosystem is safer than carrying cash. People don't have to worry about losing their money to potential thefts and snatchings. Digital funds are protected by passwords and two-factor authentication, so they are difficult to rob.
4. Environmental Benefits
The COVID-19 pandemic made e-payments popular because of the universal no-contact rule. Malaysia's cashless payment strategy allowed consumers to perform everyday tasks at a healthy distance.
5. E-wallets are Better Cashless Options
26% of the population uses e-wallets as their go-to mode of payment. It is beneficial for both businesses and customers because of better security and other factors:
6. Broad Customer Outreach
This method can make life easier for the unbanked and underbanked people who live in rural areas. They may not have the facilities of traditional banking, in which case cashless payments can better serve them.
7. Scope of Partnerships
E-wallets can collaborate with third parties to help you pay for these things:
- Transportation
- Government services
- Parking spots
- Toll payments
- Retail businesses
They are easy to set up and operate.
8. More Revenue
You can generate multiple income streams with your e-wallet app. Besides earning commissions for e-commerce transactions, you can make money through seller fees. Businesses may pay digital wallets to list their products.
9. Better Security
Data protection laws require Malaysia's cashless payment system to incorporate privacy by design. Your e-wallet apps have built-in safety measures to protect your assets.
10. Competitive Market
Recent digitalization has made it a bit difficult for businesses to rise in the market. Businesses may need to make trade as easy for customers as possible. Functional digital wallets like Touch 'n Go can give your business an edge over your competitors.
Some Popular E-Wallet Apps
Bank transfers are not the only method facilitating Malaysia’s cashless payment plans. You can choose a suitable e-wallet from several renowned apps:
- Touch 'n Go: It is the most popular digital wallet in Malaysia.
- Boost: This app focuses on rewards and loyalty programs.
- GrabPay: You can use it to deliver food and provide teksi services.
- ShopeePay: It is suitable for Shopee users and e-commerce transactions.
Why Touch 'n Go Is Leading the Malaysia’s Cashless Payment System
Touch 'n Go is a versatile e-wallet mobile app that keeps innovating itself. Their #GoNetPositive motto allows them to leave a positive virtual impression through these four principles:
- Tech 4 Good: They use technology for social growth and economic well-being.
- Treating People Fairly: Everyone must have equal opportunities to thrive.
- Digital Inclusion: The underserved population should easily access digital products and services.
- Our Planet: Touch 'n Go helps minimize electronic waste and carbon emissions.
Besides their core values, this app is leading Malaysia’s cashless payment revolution because of these features:
1. Cashless Payment for Everyday Services
If you drive regularly, Touch 'n Go is your savior. You can use their app or touch the TNG card to make toll payments. Also, you can save time at the checkouts of convenience stores and supermarkets.
Furthermore, it pays for the consumers' daily public commute too. You can use it on the MRT, LRT, KTM, and buses for hassle-free travel.
2. Ability to Pay for Government Services
It has a feature to make government-related services like:
- Road tax
- Toll tax
- Fines
- Tax renewals
- Some utility bills
3. Top Notch Security
This app fits into Malaysia's cashless payment ecosystem through strict safety regulations. Bank Negara Malaysia and the Services Commissions regulate its operations. Also, it has these features to protect your identity and assets:
- You can access this e-wallet only on your phone.
- It has a biometric login using your face or fingerprint.
- Touch 'n Go is TapSecure. This means that it recognizes your phone for transactions.
- New phones get a cool-down time of up to 48 hours.
Additionally, there is a peek-proof feature. No one can see your balance if you use this e-wallet app in public.
4. Touch 'n Go Card
You can use a physical card and the TNG app. The card has built-in NFC (Near Field Communication) technology to facilitate contactless transactions. You should register it on the TNG portal through your mobile app to start making purchases.
This feature can particularly help people transition from physical to virtual buying and selling, which is the goal of Malaysia’s cashless payment plans.
5. Investment and Insurance Opportunities
With a minimal amount, you can invest your hard-earned assets for a secure financial gain. Besides its safety mechanisms, Touch 'n Go collaborates with ASNB and Principle. These popular fund houses cater to both seasoned and beginning investors.
As for the insurance, TNG collaborates with partners like Allianz and Takaful Malaysia to secure your claims. Some categories are:
- CarInsure
- SafeTrip
- SafeHome
- Med Insure
You can place claims instantly through the e-wallet app for extra convenience.
How Touch 'n Go's Software Design Contributes to its Popularity
Every proficient custom app depends on its structure and development. Touch 'n Go has an adaptable and consumer-centered framework, making it in demand among the population. Basically, it is a one-stop-shop solution.
1. Friendly User Interface
It is so simple that users of all ages can navigate through this app. TNG e-wallet is quick to load and does not delay tasks, thus furthering Malaysia's cashless payment system. You can perform these actions:
- Balance checking
- Transaction history
- Real-time payment updates
You won't have to figure out where to find a particular feature.
2. Hybrid Card and E-wallet Integration
The software allows the synchronization of physical cards and e-wallets without a glitch. You can place the TNG card on the reading machine at the checkout or tap the payment option in your mobile app. Plus, the NFC integration has made it more trustworthy.
3. Anti-Fraud Mechanisms and Flexibility
In addition to biometrics and TapSecure, this app's software inculcates BNM's National Fraud Portal. This makes it safer to use and builds trust in Malaysia's cashless payment strategy.
What's more, you can add multiple payment methods to this e-wallet, i.e., credit cards, bank transfers, debit cards, etc. This flexibility is due to its scalable software.
4. Data Analytics Capability
This custom app analyzes customer preferences according to purchase patterns and frequency. This makes it easier for TNG to promote products, discounts, loyalty programs, and services suitable for them.
Furthermore, this feature allows Touch 'n Go to improve themselves. The user data gives information about:
- Transaction volume
- Security strength
- Potential updates in the app
TNG uses this knowledge to improve user experience and customer service quality.
5. Third-Party Integrations
Another reason Touch 'n Go leads Malaysia's cashless payment revolution is its flawless compatibility with third-party platforms. This feature allows this custom app to collaborate with retailers, investment houses, and insurance partners.
FAQs
1. What are the objectives of TNG?
The objectives of TNG (Touch 'n Go) are Data protection, Supporting homegrown technology, Creating a social safety net, and Using tech for community welfare.
2. Is TNG a financial institution?
Yes, TNG is a financial institution because of its regulations and services. Bank Negara Malaysia and the Securities Commission regulate it. The services include digital transactions, bill payments, investments, and insurance.
3. Can I use a TNG Card to pay for petrol?
Yes, you can use a TNG card to pay for petrol. Shell is a third-party collaborator to provide cashless payments. Also, you can use this card to make purchases at the Shell Select Store.
Conclusion
Malaysia's cashless payment system includes e-wallet apps as the best payment mode. Touch 'n Go is a popular digital wallet because of its flexibility in paying for everyday services and anti-fraud mechanisms. It also provides accurate consumer buying preference analysis to improve user experience.
Do you want to broaden your business prospects and create a user-friendly custom app? Book a free consultation with CodeBudee today to discuss your idea and get a quote.
