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Asia's 'cashless society' inspires adoption of Malaysian technology

AvantiKumar | Oct. 28, 2016
Technology from an MSC status company on MDEC's GAIN programme will be used to target Thailand, Indonesia, Vietnam and the Philippines with a new online payment gateway.

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Japanese ICT giant NTT Data has formed a flagship payment gateway technology to fast track into international payment gateway market using Malaysian technology.

During the announcement,  Tohru Yoshioka, Japanese director representing NTT Data, said the continuing 'cashless society' trends in Asia has inspired a move into  initial target markets, which include Thailand, Indonesia, Vietnam and the Philippines.

Yoshioka said proprietary technology from MSC status Malaysian payment gateway provider iPay88 will be leveraged in this strategy to become one of the world's top five online payment gateways.

He said this business move by was facilitated partly due to NTT Data Asia's acquisition of a majority equity stake in iPay88, in September 2015.

KH Lim, Executive Director of iPay88

Also present at the announcement made during the recent 28th MSC Malaysia Implementation Council Meeting (ICM), KH Lim, executive director of iPay88 (pic above) said the company's proprietary technology has helped to drive eCommerce in the region.

Malaysia's potential in Asia

"This is a strategic move for the NTT Group, which has leadership position in Japan, to extend its leadership as an online payment provider throughout the APAC region," said Lim.

NTT Data's Yoshioka said the company has more than 70 percent of local online payment market in Japan via using CAFIS, a payment card network in Japan that serves more 200 banks in Japan and records 60 million transactions per month.

 "The group needs to double its total online payment transactions over its networks, to a value of US$1 billion annually. Adopting iPay88 for the ASEAN market immediately enable NTT Data to drive up its business coming from outside of Japan, as iPay88 is already connected with several major online payment platform giants such as Alipay Wallet and WeChat Payment," he said.
 
 Dato' Ng Wan Peng, chief operating officer of national ICT agency Malaysia Digital Economy Corporation (MDEC) said: "iPay88 is part of The Global Acceleration and Innovation Network (GAIN) that aims to fast track local tech companies in the global technology space and example of a Malaysian quality export of tech solutions."

  "We are extremely proud that a Malaysian technology is selected by NTT Data to be such an important part of its group's strategy to front its entire global online payment business outside of Japan," she said.
 
  The 2014 Nielsen Global Survey of eCommerce highlighted that The Philippines (62 percent), Indonesia (61 percent), Vietnam (58 percent) and Thailand (58 percent) rank in the top 10 markets globally. Meanwhile a report by AT Kearney revealed that Malaysia was now at an 'eCommerce inflection point' behind Korea, US, China, India, Taiwan, and Singapore.
 
iPay88's Lim said: "The key to connecting with online shoppers is understanding what local shoppers want and then evaluating the local eMerchants who can provide the services needed in each market. iPay88 is familiar with the local ASEAN eCommerce landscape and has been succeeding by localizing our payment technology and solutions to suit the intricacy of each unique market."

 

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