Digi may have introduced the best mobile payment solution in Malaysia | SoyaCincau.com


Digi may have introduced the best mobile payment solution in Malaysia

Posted:  November 9, 2017   By:    24 comments   


To me, cashless is the way forward. Having to queue up at ATMs to draw cash just so you can pay for stuff seems so archaic to me. Add that to the fact that you have to carry around fat wallets just so you have space for the paper money and you’re looking at a system that I feel should be eradicated as soon as possible. However, at least as far as Malaysia is concerned, there really isn’t a proper cashless solution, at least not one that’s as universal as something like WeChat Pay or Alipay in China.

Still, there is hope. As more and more companies venture into this space, new ideas are popping up pretty frequently. Today, it’s Digi‘s turn with their brand new mobile payment service vcash.

What vcash it and is it easy to use?

In a nutshell, vcash is a mobile wallet. The idea is, you download the vcash app (iOS and Android), top up some money, and then pay for goods or services that support this service. Kind of like, Touch N Go — and their cashless payment solution — but also not really.

vcash is similar in the sense that you will have to deposit money into your mobile wallet before you can make payments. You also pay by scanning QR codes and authenticating your transactions. However, the way it is implemented is slightly different, and in my opinion, much more convenient.

You see, one of the keywords there is, that you deposit money into your vcash account. This means, you can still “withdraw” that cash and have them transferred to your Maybank account or walk into a Digi store and receive it as cash instead (RM1.06 service charge). Meanwhile, for the Touch N Go Wallet, there was no indication that you could do such a thing. It’s also pretty easy to deposit cash into your vcash wallet because you can do so in over 300 Digi Stores and dealerships nationwide or through the 21 supported internet banking platforms.

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The second key difference is that when you make a payment, YOU scan the QR code, enter the amount and authenticate — not the other way around where the Touch N Go Wallet requires you to generate a QR code that the merchant then has to scan. When they demo-ed it to us at the launch event, the whole process seemed pretty painless. Further, Digi says that you can also authenticate transactions with your phone’s fingerprint scanner (or your face if you’re on iPhone X) if you don’t want to enter a PIN number.

What’s more, vcash says that users won’t be charged a transaction fee for reloading or paying. Digi also says that users can send money to other vcash and non-vcash users using their vcash app. Non-vcash users who get sent money will receive a text message informing them of the transaction and prompting them to download the vcash app so they can get their money.

Speaking of the vcash app though, there is a caveat you should know about: There are actually three account tiers that unlock different features in the vcash app — Basic, Enhanced and Premium. The Basic tier will allow users to pay using vcash and keep a mobile wallet of up to RM500. On the Enhanced tier, users will unlock the ability to send up to RM50/day to other vcash and non-vcash users, request up to RM2,500, and expand your wallet limit to RM2,500. Finally, on the Premium tier, your mobile wallet limit gets expanded to RM5,000, you can send up to RM1,000/day, request up to RM5,000, and withdraw up to RM500/day.

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The good news is that these tiers aren’t locked behind some paywall. Instead, to gain access to these higher tiers, you will need to provide different levels of ID verification. Basic tier doesn’t require more than your IC/passport number when creating the account. Enhanced tier will require a photo of your IC/passport, while finally the Premium tier will require that you walk into any Digi Store for face-to-face verification.

While I get that it is a little inconvenient to have all these limitations, you should also understand that Digi isn’t a bank so they can’t really act like one. Still, for most daily transactions, I think these limits and are more than sufficient. I should probably also mention that you don’t need to be a Digi subscriber to use vcash, it’s open to everyone. vcash can also be used for online transactions via iPay88 and MOLPay gateways.

Sounds pretty useful but will merchants adopt this?

Ah yes, the biggest hurdle everyone has to overcome when trying to create something universal is always accomplishing mass adoption. No company’s going to want to support a brand new service that nobody uses (yet) especially if it requires a big upfront investment. So how is Digi going to try and get over this hurdle? From what I understand, there are two big reasons they think merchants won’t have a problem implementing this.

The first, there are currently no fees or significant upfront investments to support this technology on the merchant’s side. This means merchants won’t need to spend money on annual fees, installation fees, or invest a bunch of cash on new high-tech machinery. Since it’s a QR code payment system, all they need is to get their own unique QR code which they can obtain when they register online. Theoretically, this makes it easy for anyone to adopt — even small mom-and-pop businesses.

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Second, is that the merchant fee for payments involving vcash is currently just 0.8%. That means for every transaction, Digi will take a 0.8% cut of that transaction.

What’s more, Digi’s priding themselves on removing the hassle associated with cash transactions for the merchant. With vcash, merchants can track transactions in real-time so they know when a transaction goes through, and they can also cash out and have the funds transferred directly to their bank accounts in just 1-2 business days.

It’s not perfect, but it’s looks like a step in the right direction

I don’t think I’m alone when I say that needing to deposit cash into an e-wallet is more inconvenient than having a system that can directly charge your bank account. However, as Digi stresses, they are not a bank and for now, those channels to directly access your bank account are still closed.

With that said, vcash does seem like one of the more practical implementations of mobile payments — and it’s certainly more practical than what we saw out of Touch N Go. But vcash isn’t alone here. There are similar alternatives like Boost and FavePay — each of which have their own strengths and weaknesses. It’ll be interesting to see which one proves to be the more successful formula.

What do you guys think? Do you use a mobile payment solution? Let me know in the comments below.

For more info, you can check out their website.


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24 Comments for Digi may have introduced the best mobile payment solution in Malaysia

ohnonoway

i forsee prices will increase "gao gao" when these "so call" convenience pay system arises why ?
just look at our good old touch n' go … enough said.

hooleah

Shows promise. They need to identify a niche and really make it ubiquitous in this niche.

TouchNGo's niche is transportation, but they are having difficulty moving into any other area because they are simply too greedy… too high merchant charges, which the merchant has no option but to transfer to the customer. They can't even get parking right.

I think food is very viable, especially the low-end, stall/foodtruck area. It's a win-win to handle transactions without cash (safety, convenience, speed), and is currently unserved by other payment solutions.

Digi needs to up the hype on this…

    Jo

    In an way, the effort is good, at least more people in Malaysia can use the service, unlike Samsung pay which require NFC capable phone (AFAIK, bluetooth is not possible).

      Aquila

      And MST. The reason why not BT is for security reason. Imagine I can hack your phone from 10metres away.

AhYat

I think Yes also have Yes Credit that was many years ago… they didn't move on probably they saw the issues like the above…

    Lousy tng

    The yes

    Lousy tng

    The yes credit is only meant to be used in their own services… And ytl as a whole just don’t know or don’t collaborate with everyone else.

LV

I’ll like to know if this is a paid-sponsored-funded article? It’s just so biased.

1. QR code payment is all out there, Favepay, Grabpay and more, so nothing new there.

2. Deposit money first via cash, crazy

3. Deposit at ONLY Digi centre and only 300!!!

I think the current ones in the market has way more advantageous that this.

Seriously, good luck guys!!!

    What?

    1. What is favepay? Rebranded Groupon? Grabpay only for grab I thought?
    2. Either this or other option is like alipay or wechat which connects to the bank
    3. 300 DiGi stores not RM300 and you can do it online within the app. Read clearly before making some smart arse comment.

    Chong Kar Siong

    Bro. Can reload via visa and Master … U read and try the app before blindly write comment pls …

    Hahaha..

    Stupid people. Don't know how to read ah? Bodoh Sombong.
    Online banking pun boleh la bodoh.

    soyacincau

    This isn’t sponsored. You’ll know when you see one as we always declare any sponsored content upfront on the first line.

    It’s not just about using QR codes but the ease of use, withdrawals and low transaction fee for merchants. You don’t need to visit a Digi centre to withdraw your cash. There’s the option to transfer it to your own bank account. If there are any factual errors, you can point it out to us.

    ???

    You seriously need to learn how to read.

Lousy tng

Well touch n go wallet is destined to fail if they don’t change their whole system! Why on earth we still have to endure long queues at the tool booth just to get our cards reloaded? What on earth thr system offline always everytime we go to reload at Watson’s and guardian and other outlets too? How on earth we cannot reload our cards digitally in this so called digital age?

Touch n go is just being ridicule to everyone of us by monopolying the cashless market in Malaysia and public is seemed don’t have any choices after all.

    Shatya

    plus d 50cent for each reload they charge..

      mydragoon

      some of us resort to going to outlets with 0 fee for reload. there are quite a few, including KK Mart.

named

0.8% merchant fee? even higher than amex, and digi doesn't even have to go through any global clearing network. they swallow the whole 0.8% awesome.

    Fintech destroyers

    Well the merchant fee or 0.8% is lower than what banks are offering and merchants need not to put down down payments, service fees for the device, monthly sales volume and etc.

    All they need is just print out the qr code and paste it at the tills.

immature lot

just pay cash.
idiots!

    Dumb and dumber

    Dumb don’t move forward or think forward

    Immmature?

    I found a place suitable for you to live. A cave.

mat serbu

LOL wut

fairylord

Besides of Favepay and Samsung Pay, it seems most of the ewallets require users to reload before can use. Favepay and Samsung Pay allow to link with preferred credit/debit card to do payment which is convenient to users. Is there any ewallet out there allow to link with credit/debit card instead of reloading it?

For merchant side, Vcash by digi really offer great low service charge at 0.8% and with settlement in 2days. And Vcash without cash back feature is much favourable as usually those cash back is part of the revenue that burden the merchant. Samsung pay, i believe also has no cash back forced and Samsung Rewards is an optional for merchant to join.

Alex Mobii

Boost seems more popular and now that GrabPay is in the market, it will be in due time VCash will tutup kedai.