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How iPay88 achieved more than 60% market share in Malaysia

AvantiKumar | Sept. 1, 2015
The Malaysian online payment company iPay88 now wants to dominate the region’s online payment scene.

Ipay88 

Photo - Chan Kok Long, co-Founder and Executive Director of iPay88 Sdn Bhd.

 

Having secured more than 60 percent market share in its home country, Malaysian online payment company iPay88 has announced plans to dominate the region's online payment sector.

Chan Kok Long, iPay88's co-founder and executive director of iPay88, said up to 700 additional new merchant users will sign by end 2015.

Chan said the company's strong position, with almost 8,000 customers already signed up, can be partly attributed to its proprietary online payment gateway system, which has been continuously enhanced since 2006.

"Today, after a consistent year-on-year customer base growth of about 25 percent during the last three boom years of eCommerce in this country, we can safely claim that iPay88 is the clear market leader and No.1 trusted choice that any business would look to partner with for all online payment gateway and digital transactional system," he said.

iPay88's existing customers include large conglomerates, GLCs (government linked companies), SMEs (small and medium enterprises) and SOHOs (small offices/home offices).  Among them are established brands such as Genting Resort World, Syarikat Air Negeri Sembilan (SAINS), Perbadanan Kemajuan Negeri Selangor (PKNS), The Star Publication, Bonuslink, Jobstreet, Tokio Marine, TuneTalk, and Digi.

"We are very fortunate to have the trust of many of the big name players like Lazada, Rakuten, as well as the newly launched 11street by Celcom-SK Planet and Logon by SinChew, to adopt iPay88's online payment system for their bread and butter operations which is in eCommerce," said Chan.

Regional expansion, customisation

Chan added that some of the new regional customers that iPay88 has acquired in the last quarter include China-based Xiamen Airlines, KTM (Keretapi Tanah Melayu), Hilton Hotel, Padini and Tune Money.

"This further expands and diversifies the company's existing base of SME and large corporations, which are rapidly embracing eCommerce as a more significant way of their business operations," he said.

Commenting on expansion plans, Chan cited a recent Forbes study, which said Malaysia's eCommerce transactions value was  expected to touch RM5 (US$1.19) billion in year 2015. "This is driven by the country's current position as the biggest eCommerce market in Southeast Asia, recording one of the highest 'online transactions per capita' in Southeast Asia."

As well as Malaysia's rapidly expanding eCommerce sector, Chan reiterated that iPay88's "biggest competitive factor for the company to stay at the leading edge is its Product Development capability."

"Many physical brick-and-mortar businesses have their own supply chain and business model. Hence to help these (businesses) to transition and adopt eCommerce, iPay88 has to have the ability to very quickly and effectively customise our online payment solutions to cater to unique operational processes of these businesses," he said.

"This very unique capability has enabled iPay88 to win many new customers; and this is why we continually invest up to 30 per cent of our company's total earnings back into Product Development and Research & Development (R&D) which is key to assist our customers jump onto the eCommerce bandwagon," said Chan

"iPay88 also has very strong customer base in the SEA regional market especially in Philippines and Indonesia, as they have been actively acquiring customers in those markets since its inception in 2006," he added.

In Indonesia, seven Indonesian banks including Bank Central Asia (BCA), Bank Mandiri, Bank CIMB Niaga, Bank Internasional Indonesia (BII), Bank Danamon and Bank Muamalat Indonesia - have integrated iPay88 as part of their online banking facilities.

In the Philippines, iPay88 has four of the country's largest conglomerates as its customers:  SM Investments Corporation, Ayala Corporation, Bank of the Philippine Islands and Ramcar Group of Companies.

Revolutionising the market

Chan said that iPay88 has in plans to introduce new digital payment solutions, which will 'revolutionize' the market.

"For example, we are seeing that the insurance sector is very fond of Email Payment or 'Request for Payment'; while mPOS (Mobile Point-of-Sale) that is the leverage of smartphones as a payment device will totally revolutionize the playing field of sales and services agent-centric businesses such as multi-level marketing and F&B outlets," he said.

For the year 2015, Chan expects a higher level of growth at 50 percent due to the strong general market move towards eCommerce adoption.

"With an unwavering focus on Product Development and building a strong trusted network with Financial Service Providers such as banks, iPay88 is at an important crossroad which may see strategic partnerships to expand its brand exponentially across the regional market," he said.

 

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