Touch ‘n Go Sdn Bhd (TNG) and partner Ant Financial Services Group have obtained Bank Negara Malaysia’s approval to operate and offer mobile e-wallet services in the country.
CIMB Group Holdings Bhd , which owns 52% in TNG, said in a statement yesterday that the new mobile e-wallet would facilitate payment in a cashless and cardless environment by leveraging on Ant Financial’s Alipay technology platform, which currently supports over 450 million users in China via its Alipay payments system.
The service will be operated by TNG Digital Sdn Bhd, the joint venture company TNG formed with Ant Financial Group in July 2017.
“TNG also expects its current users who are predominantly toll, transit and parking users to quickly sign on to enjoy the expanded services, ” the statement said.
There are more than 18 million active Touch ‘n Go card users in Malaysia.
TNG is also 28% and 20%-owned by MTD Equity Sdn Bhd and PLUS Expressways Bhd, respectively.
“The new mobile e-wallet will enable Malaysians to experience a secure, convenient and seamless payment ecosystem by using Quick Response (QR) codes to perform, among others, online shopping, bill payment, retail payments, as well as P2P fund transfers,” the statement added.
TNG chief executive officer Syahrunizam Samsudin said the initiative is in support of the government’s aspiration to accelerate the creation of a robust and secure digital payments ecosystem.
“Today, Touch ‘n Go [is] already the number one player in micropayments and we see this offering as an add-on as we strengthen our value proposition, moving the country and our customers further into the realm of digital payments,” he added.
E-wallets are typically made up of an application that resides on one’s mobile device, which then can be swiped over a QR code at a merchant’s location for the payment of goods or services. Users will be able to top up the credit on their e-wallets via online banking facilities in Malaysia.
The TNG e-wallet will enable payments to be made electronically at even very small merchants such as night market vendors and tea stall operators.