KUALA LUMPUR: The e-payments industry will be significantly enhanced when its adoption becomes widespread among rural communities, according to the National Tech Association of Malaysia (PIKOM).
Its advisor Ganesh Kumar Bangah said it is crucial to understand that consumer behaviour in rural areas differs from trends commonly observed in urban cities and larger towns.
Ganesh emphasised the importance of social commerce and leveraging the power of influential figures, such as celebrities and social media influencers, to promote e-payments among the rural population.
"By collaborating with these individuals, e-payment service providers can effectively convey the benefits and convenience of digital transactions to rural consumers, establishing trust and credibility in the process," said Ganesh.
He said in recent years, social media has gained significant traction even in rural areas, presenting an opportunity for e-payment companies to reach potential users.
By employing targeted marketing strategies and partnering with local influencers, e-payment providers can tap into the vast potential of the rural market, Ganesh said.
"Furthermore, educating rural communities about the security measures and safeguards associated with e-payments will be crucial in building trust and overcoming any apprehensions they may have," added Ganesh, who is also the PIKOM e-commerce chapter chairperson.
Ganesh was speaking at an industry forum entitled 'Tech for Business-to-Business (B2B) Innovations' at the 'Everything Payments Summit' held on Wednesday at the Asian Institute of Chartered Bankers (AICB), Kuala Lumpur.
Payments Network Malaysia Sdn Bhd (PayNet), the national payments network and shared central infrastructure for Malaysia's financial markets, organised the event.
Bank Negara Malaysia (BNM) is Paynet's single largest shareholder, and eleven Malaysian financial institutions are joint shareholders.
Also present at the forum were PayNet chief commercial officer Gary Yeoh, SME Association of Malaysia national vice president Chin Chee Seong and Boost Biz chief executive officer Eric Chong.
Rural communities often need help accessing traditional banking services, such as limited physical branches and automated teller machines (ATMs).
Introducing e-payments as a viable alternative can address these obstacles and bring financial inclusion to rural areas.
"By facilitating secure and convenient digital transactions, e-payments can empower rural consumers, enabling them to participate in the digital economy and access a wide range of goods and services previously out of reach," Ganesh said.
To fully realise the potential of the e-payments industry in rural communities, e-payment providers need to adapt their strategies and offerings to meet rural consumers' unique needs and preferences.
"By tailoring their services to align with the local context and collaborating with trusted local influencers, e-payment companies can foster acceptance and widespread adoption of digital payment methods in rural areas.
"Ultimately, this will benefit the rural community and drive economic growth and financial inclusion at a national level," he said.
Ganesh cited the successes of BizApp, Malaysia's leading rural social commerce platform, which has gained traction among rural communities due to its user-friendly interface and strategic partnership with Nuffnang Sdn Bhd. In addition, this leading growth marketing company employs influencers for high-impact outreach.
With over 700,000 users, BizApp caters to the needs of Bumiputera businesses in suburban and rural areas, offering efficient order and delivery management.
"BizApp has achieved a remarkable RM3.2 billion gross transaction value (GMV) since its establishment in 2017, empowering non-urban communities to participate in social commerce," said Ganesh.
BizApp is also supported by Commerce.Asia, of which Ganesh is the majority shareholder. The company plans to expand its reach across Malaysia and Southeast Asia.
PayNet chief commercial officer Gary Yeoh said the company aims to build inclusive, accessible, and efficient payments and financial ecosystems for Malaysia.
"PayNet's shareholders do not receive dividends, and surplus profits are reinvested to ensure that the nation's financial market infrastructures and payment ecosystems are resilient, competitive, and accessible to all," said Gary.
He said a concerted public-private partnership effort is needed to make the e-payment industry all-inclusive throughout Malaysia, especially in rural communities.
"Efforts to promote e-payment are currently quite fragmented. We need to come together to drive a unified approach towards e-payment adoption in rural areas," Gary said.
"A collaborative and holistic strategy can be developed by bringing together stakeholders from various sectors, including government agencies, financial institutions, e-payment service providers and community organisations.
"This unified approach will enable the identification of specific challenges faced by rural communities and the implementation of targeted initiatives to address them. Through coordinated efforts, we can create a comprehensive ecosystem that supports and accelerates e-payment adoption in rural areas, driving financial inclusion and empowering communities across Malaysia," Gary added.
SME Association of Malaysia national vice president Chin Chee Seong emphasised the importance of education in encouraging the adoption of e-payments among rural communities.
"Public-private partnership efforts are needed to educate and involve rural communities in the digital economy, building their confidence to participate in the e-payments industry," said Chin.
Chin also suggested incentivising rural communities by implementing initiatives such as 'lucky draws' and reducing or eliminating transaction fees for e-payments.
"By providing these incentives, rural consumers would gain confidence in using e-payments, leading to the true growth of the industry in Malaysia," he said.
Boost Biz chief executive officer Eric Chong highlighted that Boost was the first local company to launch a merchant business-to-business (B2B) wallet in Malaysia.
"We view all our merchants, no matter how big or small, as partners and are constantly innovating to help them take advantage of our wide range of services to realise growth at higher levels," said Eric.