PETALING JAYA: E-wallets are all the rage this year, especially after the government rolled out the e-Tunai Rakyat digital stimulus last month.
And amidst the still overcrowded e-wallet sphere in Malaysia, things are about to get a little more interesting with a local fintech player receiving the approval for white labelling services.
Kiplepay Sdn Bhd, a wholly-owned subsidiary of GREEN PACKET BHD, is the first company to receive the green light from Bank Negara to provide white labelled e-wallet solutions.
To put it simply, white labelling is the process where a company builds a product or technology and licences it out to another company, which labels it as their own product.
Businesses can have their own personalised e-wallet while eliminating the high cost and long lead time of developing an e-wallet from scratch.
Coupled with a payment gateway service, the approval will be a thrust to KiplePay’s overall fintech play where it will provide a new revenue stream to Green Packet.
By setting up and managing a mobile app-based payment solution for third parties, the gross transaction value (GTV) is expected to increase by 500% over the next two years.
KiplePay chief executive officer Tan Kay Yen said it is a big win for the company to obtain the approval, which would enable it to propel the nation’s cashless agenda further.
“With white labelling services, we can enable and facilitate more businesses, be it for an enterprise with a large customer base or small and medium enterprises to launch their own e-wallets.
“With Malaysia fast becoming a cashless society, the way for all businesses to go digital is to fulfil an underserved need for a segment and have a relevant e-wallet functionality as an underlayer, ” he said, adding that businesses today needed to think innovatively to create fresh and unique value propositions for specific niches.
Tan, who is also an executive director at Green Packet, said such functionalities included a spectrum of mobile payments, discounts, loyalty rewards, P2P money transfer, data top ups and bill payments could be made available in the e-wallet itself.
While this would not only give a full control to improve brand discernibleness and deliver the best user experience, Tan pointed out that it also provided business owners better opportunities to interact with their customers and better anticipate their needs and desires.
KiplePay has been in the e-wallet scene since 2017, with a deep focus on universities and students’ niche.
It currently provides e-wallet for business-to-business-to-consumer segments and payment gateway for business-to-business segments.
And one of KiplePay’s success stories is the powering of Petronas Dagangan Bhd’s e-wallet, known as Setel.
Setel is the first fuel e-payment solution in Malaysia, available at more than 700 Petronas stations nationwide.
The e-wallet had just recorded over three million transactions as of January over a period of around six months, only in the Klang Valley.
Following what it had achieved with Setel, Tan also hinted at another collaboration with another oil and gas company which currently operates more than 100 petrol stations in Malaysia, to follow soon.
This white labelling service could see the incorporation of artificial intelligence and facial recognition.
Apart from its experience with oil and gas companies, KiplePay had also worked with the Kedah, Perak and Selangor governments to enable cashless disbursement of welfare allowance via debit cards to more than 60,000 families.
It also collaborated with local universities to distribute students’ allowances through E-wallets and thereafter, unlocks the e-wallet conveniences for students and merchant communities at the campuses and university towns.
“With e-wallet, payment gateway and wallet-as-a-service capabilities, we can now build a broad range of pick-and-choose functionalities powered by the technology talents, assets and network of international partners of the Green Packet group.
“Ultimately, we strive to use our technology capabilities to help and enable businesses to serve their customers better, ” said Tan.
He added that KiplePay is set to explore and offer white labelling services to more organisations and corporations with a large customer base in sectors like insurance, food, retail, transportation and also direct companies and companies that prioritise loyalty programmes.